Franco-Nevada (NYSE:FNV) and Augusta Gold (OTCMKTS:AUGG) Critical Survey

Augusta Gold (OTCMKTS:AUGG) and Franco-Nevada (NYSE:FNV) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Volatility and Risk

Augusta Gold has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Augusta Gold	N/A	-34.03%	-12.24%
Franco-Nevada	59.48%	13.94%	13.12%

Valuation and Earnings

This table compares Augusta Gold and Franco-Nevada”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Augusta Gold	N/A	N/A	-$6.59 million	($0.09)	-13.51
Franco-Nevada	$1.11 billion	37.20	$552.10 million	$4.77	45.05

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

Insider & Institutional Ownership

52.4% of Augusta Gold shares are held by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are held by institutional investors. 45.8% of Augusta Gold shares are held by insiders. Comparatively, 0.7% of Franco-Nevada shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Augusta Gold and Franco-Nevada, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Augusta Gold	0	0	0	0	0.00
Franco-Nevada	0	6	7	1	2.64

Franco-Nevada has a consensus target price of $232.75, suggesting a potential upside of 8.31%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts plainly believe Franco-Nevada is more favorable than Augusta Gold.

Summary

Franco-Nevada beats Augusta Gold on 12 of the 14 factors compared between the two stocks.

About Augusta Gold

Augusta Gold Corp. engages in the acquisition and exploration of mineral properties in the United States. The company primarily explores for gold, silver, and other metals. It holds interests in the Bullfrog gold project consists of 734 unpatented lode mining claims and mill site claims, and 87 patented mining claims located in the Bullfrog Hills of Nye County, Nevada; and the Reward Gold Project comprises 123 unpatented Bureau of Land Management (BLM) placer and lode mining claims, and six patented placer mining claims covering approximately 2,333 acres located in Nye County, Nevada. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. is headquartered in Vancouver, Canada.

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.