Analyzing SilverCrest Metals (NYSE:SILV) and Franco-Nevada (NYSE:FNV)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.10 billion	21.34	-$466.40 million	($3.16)	-38.45
SilverCrest Metals	$245.13 million	6.17	$116.72 million	$0.57	17.84

SilverCrest Metals has lower revenue, but higher earnings 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franco-Nevada	-55.28%	10.55%	10.09%
SilverCrest Metals	30.85%	23.35%	20.98%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Franco-Nevada and SilverCrest Metals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	3	7	0	2.70
SilverCrest Metals	0	2	1	0	2.33

Franco-Nevada currently has a consensus price target of $148.86, indicating a potential upside of 22.53%. SilverCrest Metals has a consensus price target of $10.13, indicating a potential downside of 0.44%. Given Franco-Nevada’s stronger consensus rating and higher possible upside, equities analysts plainly believe Franco-Nevada is more favorable than SilverCrest Metals.

Risk & Volatility

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

Institutional & Insider Ownership

77.1% of Franco-Nevada shares are owned by institutional investors. Comparatively, 44.8% of SilverCrest Metals shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by insiders. Comparatively, 4.1% of SilverCrest Metals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

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.