Head to Head Analysis: Franco-Nevada (NYSE:FNV) and SilverCrest Metals (NYSE:SILV)

SilverCrest Metals (NYSE:SILV) and Franco-Nevada (NYSE:FNV) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Profitability

This table compares SilverCrest Metals and Franco-Nevada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SilverCrest Metals	30.85%	23.80%	21.54%
Franco-Nevada	-55.28%	10.55%	10.09%

Earnings and Valuation

This table compares SilverCrest Metals and Franco-Nevada”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverCrest Metals	$245.13 million	5.94	$116.72 million	$0.57	17.18
Franco-Nevada	$1.22 billion	18.19	-$466.40 million	($3.16)	-36.46

SilverCrest Metals has higher earnings, but lower revenue than Franco-Nevada. Franco-Nevada is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

44.8% of SilverCrest Metals shares are owned by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are owned by institutional investors. 4.1% of SilverCrest Metals shares are owned by insiders. Comparatively, 0.7% of Franco-Nevada shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for SilverCrest Metals and Franco-Nevada, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverCrest Metals	0	2	1	0	2.33
Franco-Nevada	0	3	5	0	2.63

SilverCrest Metals presently has a consensus price target of $10.13, indicating a potential upside of 3.37%. Franco-Nevada has a consensus price target of $156.57, indicating a potential upside of 35.89%. Given Franco-Nevada’s stronger consensus rating and higher possible upside, analysts plainly believe Franco-Nevada is more favorable than SilverCrest Metals.

Volatility & Risk

SilverCrest Metals has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Summary

SilverCrest Metals beats Franco-Nevada on 8 of the 14 factors compared between the two stocks.

About SilverCrest Metals

SilverCrest Metals Inc. engages in the acquiring, exploration, and development of precious metal properties in Mexico. The company primarily explores for silver and gold properties. Its focuses on principal property the Las Chispas Mine that consists of 28 concessions totaling of approximately 1,401 hectares located in Sonora, Mexico, as well as operates a portfolio of El Picacho, Cruz de Mayo, and Angel de Plata properties in Sonora Mexico. The company was incorporated in 2015 and is headquartered in Vancouver, Canada.

About Franco-Nevada

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.