Critical Contrast: Franco-Nevada (NYSE:FNV) & Osisko Mining (OTCMKTS:OBNNF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franco-Nevada	-39.88%	10.81%	10.44%
Osisko Mining	N/A	-1.01%	-0.82%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Franco-Nevada and Osisko Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	5	5	0	2.50
Osisko Mining	0	0	1	0	3.00

Franco-Nevada currently has a consensus target price of $152.33, indicating a potential upside of 26.42%. Osisko Mining has a consensus target price of $3.50, indicating a potential upside of 61.92%. Given Osisko Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Osisko Mining is more favorable than Franco-Nevada.

Institutional & Insider Ownership

77.1% of Franco-Nevada shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.20 billion	19.35	-$466.40 million	($2.49)	-48.39
Osisko Mining	N/A	N/A	$165.48 million	$0.42	5.15

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

Osisko Mining Inc., a mineral exploration company, engages in the acquisition, exploration, and development of precious mineral deposits in Canada. The company primarily explores for gold deposits. It holds interest in the Windfall Lake Project, Quévillon Osborne Project, and Urban-Barry Project located in Québec, Canada; and Phoenix Properties located in Québec, Canada. The company was formerly known as Oban Mining Corporation and changed its name to Osisko Mining Inc. in June 2016. Osisko Mining Inc. is headquartered in Toronto, Canada.