Contrasting Taseko Mines (NYSE:TGB) and Franco-Nevada (NYSE:FNV)

Taseko Mines (NYSE:TGBGet Free Report) and Franco-Nevada (NYSE:FNVGet Free Report) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Taseko Mines and Franco-Nevada’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Taseko Mines $301.22 million 1.37 -$19.98 million ($0.04) -35.75
Franco-Nevada $1.23 billion 22.40 $700.60 million $3.45 41.61

Franco-Nevada has higher revenue and earnings than Taseko Mines. Taseko Mines is trading at a lower price-to-earnings ratio than Franco-Nevada, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

16.8% of Taseko Mines shares are held by institutional investors. Comparatively, 66.7% of Franco-Nevada shares are held by institutional investors. 2.3% of Taseko Mines shares are held by company insiders. Comparatively, 0.7% of Franco-Nevada shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Taseko Mines and Franco-Nevada, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taseko Mines 0 0 1 0 3.00
Franco-Nevada 1 2 4 0 2.43

Taseko Mines currently has a consensus price target of $2.28, suggesting a potential upside of 59.44%. Franco-Nevada has a consensus price target of $161.57, suggesting a potential upside of 12.56%. Given Taseko Mines’ stronger consensus rating and higher probable upside, research analysts clearly believe Taseko Mines is more favorable than Franco-Nevada.

Profitability

This table compares Taseko Mines and Franco-Nevada’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taseko Mines -2.88% 3.40% 0.92%
Franco-Nevada 53.88% 10.20% 9.88%

Risk & Volatility

Taseko Mines has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Summary

Franco-Nevada beats Taseko Mines on 9 of the 14 factors compared between the two stocks.

About Taseko Mines

(Get Free Report)

Taseko Mines Limited, a mining company, acquires, develops, and operates mineral properties. It explores for copper, molybdenum, gold, niobium, and silver deposits. The company holds 75% interest in the Gibraltar mine located in British Columbia. It also holds 100% interest in Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project located in British Columbia; and the Florence copper project located in Arizona. Taseko Mines Limited was incorporated in 1966 and is headquartered in Vancouver, Canada.

About Franco-Nevada

(Get Free Report)

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in Latin America, 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. The company was founded in 1986 and is headquartered in Toronto, Canada.

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