Head-To-Head Comparison: Coeur Mining (CDE) versus Franco Nevada (FNV)

Coeur Mining (NYSE: CDE) and Franco Nevada (NYSE:FNV) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Institutional & Insider Ownership

71.3% of Coeur Mining shares are held by institutional investors. Comparatively, 61.2% of Franco Nevada shares are held by institutional investors. 1.3% of Coeur Mining shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Coeur Mining and Franco Nevada’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coeur Mining -2.58% -0.77% -0.40%
Franco Nevada 31.64% 4.67% 4.59%

Analyst Ratings

This is a summary of recent ratings and price targets for Coeur Mining and Franco Nevada, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coeur Mining 0 3 4 0 2.57
Franco Nevada 1 4 4 0 2.33

Coeur Mining presently has a consensus target price of $9.70, suggesting a potential upside of 27.13%. Franco Nevada has a consensus target price of $91.86, suggesting a potential upside of 29.82%. Given Franco Nevada’s higher possible upside, analysts clearly believe Franco Nevada is more favorable than Coeur Mining.

Valuation and Earnings

This table compares Coeur Mining and Franco Nevada’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coeur Mining $709.60 million 2.00 -$1.31 million $0.02 381.50
Franco Nevada $675.00 million 19.50 $194.70 million $1.08 65.52

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

Dividends

Franco Nevada pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Coeur Mining does not pay a dividend. Franco Nevada pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franco Nevada has increased its dividend for 5 consecutive years.

Risk and Volatility

Coeur Mining has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Franco Nevada has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500.

Summary

Franco Nevada beats Coeur Mining on 9 of the 16 factors compared between the two stocks.

Coeur Mining Company Profile

Coeur Mining, Inc. owns, operates, explores for, and develops silver and gold properties. It holds interests in the Palmarejo silver-gold complex located in Mexico; the Silvertip silver-zinc-lead mine located in British Columbia; the Rochester silver-gold mine located in Nevada; the Kensington gold mine located in Alaska; and the Wharf gold mine located in South Dakota. The Company also owns interest in the La Preciosa silver-gold project located in the State of Durango in northern Mexico. Coeur Mining, Inc. markets its silver and gold concentrates to third-party refiners and smelters in the United States and China. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.

Franco Nevada Company Profile

Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Peru, Chile, Australia, and Africa. The company also holds interests in silver, platinum group metals, oil and gas, and other resource assets. As of December 31, 2017, it had a portfolio of 341 assets. The company was incorporated in 2007 and is headquartered in Toronto, Canada.

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