Comparing Fresnillo (OTCMKTS:FNLPF) and Golden Minerals (NYSE:AUMN)

Golden Minerals (NYSE:AUMN) and Fresnillo (OTCMKTS:FNLPF) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Golden Minerals and Fresnillo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Minerals	0	0	1	0	3.00
Fresnillo	0	1	0	1	3.00

Golden Minerals currently has a consensus target price of $1.50, indicating a potential upside of 1,738.24%. Given Golden Minerals’ higher probable upside, equities research analysts plainly believe Golden Minerals is more favorable than Fresnillo.

Valuation and Earnings

This table compares Golden Minerals and Fresnillo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Minerals	$12.00 million	0.10	-$9.23 million	($0.52)	-0.16
Fresnillo	$2.71 billion	2.64	$233.91 million	N/A	N/A

Fresnillo has higher revenue and earnings than Golden Minerals.

Profitability

This table compares Golden Minerals and Fresnillo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Minerals	N/A	-1,051.75%	-57.22%
Fresnillo	N/A	N/A	N/A

Risk & Volatility

Golden Minerals has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Fresnillo has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Insider and Institutional Ownership

13.4% of Golden Minerals shares are owned by institutional investors. 5.0% of Golden Minerals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Fresnillo beats Golden Minerals on 7 of the 11 factors compared between the two stocks.

About Golden Minerals

Golden Minerals Company, a precious metals exploration company explores for mineral properties in Argentina, Nevada, and Mexico. It explores for gold, silver, copper, zinc, lead, and other minerals. The company was formerly known as Apex Silver Mines Limited and changed its name to Golden Minerals Company in March 2009. Golden Minerals Company was founded in 1996 and is headquartered in Golden, Colorado.

About Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.