Pelangio Exploration (OTCMKTS:PGXPF) & Franco-Nevada (NYSE:FNV) Financial Analysis
by Danessa Lincoln · The Markets DailyFranco-Nevada (NYSE:FNV – Get Free Report) and Pelangio Exploration (OTCMKTS:PGXPF – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Volatility & Risk
Franco-Nevada has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.
Institutional & Insider Ownership
77.1% of Franco-Nevada shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Franco-Nevada and Pelangio Exploration’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franco-Nevada | 59.48% | 13.94% | 13.12% |
| Pelangio Exploration | N/A | -778.64% | -87.35% |
Valuation & Earnings
This table compares Franco-Nevada and Pelangio Exploration”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franco-Nevada | $1.11 billion | 42.20 | $552.10 million | $4.77 | 51.10 |
| Pelangio Exploration | N/A | N/A | -$550,000.00 | N/A | N/A |
Franco-Nevada has higher revenue and earnings than Pelangio Exploration.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Franco-Nevada and Pelangio Exploration, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franco-Nevada | 0 | 6 | 7 | 1 | 2.64 |
| Pelangio Exploration | 0 | 0 | 0 | 0 | 0.00 |
Franco-Nevada presently has a consensus price target of $232.75, indicating a potential downside of 4.52%. Given Franco-Nevada’s stronger consensus rating and higher possible upside, analysts clearly believe Franco-Nevada is more favorable than Pelangio Exploration.
Summary
Franco-Nevada beats Pelangio Exploration on 12 of the 12 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 Pelangio Exploration
Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.