Head-To-Head Review: Perpetua Resources (NASDAQ:PPTA) versus Franklin Mining (OTCMKTS:FMNJ)

Franklin Mining (OTCMKTS:FMNJ) and Perpetua Resources (NASDAQ:PPTA) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Volatility and Risk

Franklin Mining has a beta of -0.37, indicating that its share price is 137% less volatile than the S&P 500. Comparatively, Perpetua Resources has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Institutional and Insider Ownership

70.1% of Perpetua Resources shares are owned by institutional investors. 20.0% of Franklin Mining shares are owned by insiders. Comparatively, 1.9% of Perpetua Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Franklin Mining and Perpetua Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Mining	N/A	N/A	N/A
Perpetua Resources	N/A	-19.48%	-17.08%

Analyst Recommendations

This is a breakdown of recent recommendations for Franklin Mining and Perpetua Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Mining	0	0	0	0	0.00
Perpetua Resources	0	0	3	0	3.00

Perpetua Resources has a consensus price target of $18.50, suggesting a potential upside of 48.48%. Given Perpetua Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Perpetua Resources is more favorable than Franklin Mining.

Earnings and Valuation

This table compares Franklin Mining and Perpetua Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Mining	N/A	N/A	-$430,000.00	($0.03)	-0.05
Perpetua Resources	N/A	N/A	-$18.77 million	($0.22)	-56.64

Perpetua Resources is trading at a lower price-to-earnings ratio than Franklin Mining, indicating that it is currently the more affordable of the two stocks.

Summary

Franklin Mining beats Perpetua Resources on 6 of the 11 factors compared between the two stocks.

About Franklin Mining

Franklin Mining, Inc., a mining and exploration company, acquires and develops mineral properties. The company explores for gold, silver, lead, and zinc deposits. It owns interests in the La Joya mining concession in Bolivia; and Madre de Dios Area, Ch-Mine, and Los Totems project in Peru. The company was formerly known as WCM Capital, Inc. Franklin Mining, Inc. was founded in 1864 and is based in Carson City, Nevada.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.