Norsk Hydro ASA (OTCMKTS:NHYDY) & Fortuna Mining (NYSE:FSM) Critical Contrast

Norsk Hydro ASA (OTCMKTS:NHYDY) and Fortuna Mining (NYSE:FSM) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

0.0% of Norsk Hydro ASA shares are owned by institutional investors. Comparatively, 33.8% of Fortuna Mining shares are owned by institutional investors. 0.0% of Norsk Hydro ASA shares are owned by insiders. Comparatively, 1.0% of Fortuna Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Norsk Hydro ASA and Fortuna Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norsk Hydro ASA	3.06%	9.44%	4.97%
Fortuna Mining	27.59%	14.36%	10.37%

Valuation & Earnings

This table compares Norsk Hydro ASA and Fortuna Mining”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norsk Hydro ASA	$20.05 billion	0.89	$647.58 million	$0.31	28.97
Fortuna Mining	$947.06 million	3.95	$128.74 million	$0.90	13.61

Norsk Hydro ASA has higher revenue and earnings than Fortuna Mining. Fortuna Mining is trading at a lower price-to-earnings ratio than Norsk Hydro ASA, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Norsk Hydro ASA and Fortuna Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norsk Hydro ASA	3	5	2	0	1.90
Fortuna Mining	0	0	4	1	3.20

Fortuna Mining has a consensus target price of $11.00, indicating a potential downside of 10.17%. Given Fortuna Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Fortuna Mining is more favorable than Norsk Hydro ASA.

Volatility and Risk

Norsk Hydro ASA has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Fortuna Mining has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Summary

Fortuna Mining beats Norsk Hydro ASA on 11 of the 15 factors compared between the two stocks.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

About Fortuna Mining

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.