Critical Analysis: Osisko Development (NYSE:ODV) versus Fresnillo (OTCMKTS:FNLPF)

Osisko Development (NYSE:ODV) and Fresnillo (OTCMKTS:FNLPF) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

15.2% of Osisko Development shares are owned by institutional investors. 0.9% of Osisko Development shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Osisko Development and Fresnillo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Osisko Development	-831.24%	-5.99%	-4.52%
Fresnillo	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Osisko Development and Fresnillo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osisko Development	0	1	0	0	2.00
Fresnillo	0	1	0	1	3.00

Risk & Volatility

Osisko Development has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Fresnillo has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares Osisko Development and Fresnillo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osisko Development	$21.73 million	8.84	-$134.73 million	($1.45)	-1.55
Fresnillo	$2.71 billion	1.96	$233.91 million	N/A	N/A

Fresnillo has higher revenue and earnings than Osisko Development.

Summary

Fresnillo beats Osisko Development on 7 of the 11 factors compared between the two stocks.

About Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.

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.