Analyzing Pelangio Exploration (OTCMKTS:PGXPF) & Franco-Nevada (NYSE:FNV)

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

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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Pelangio Exploration and Franco-Nevada”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pelangio Exploration	N/A	N/A	-$550,000.00	N/A	N/A
Franco-Nevada	$1.11 billion	40.56	$552.10 million	$4.77	49.11

Franco-Nevada has higher revenue and earnings than Pelangio Exploration.

Analyst Ratings

This is a breakdown of recent recommendations for Pelangio Exploration and Franco-Nevada, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pelangio Exploration	0	0	0	0	0.00
Franco-Nevada	0	8	6	0	2.43

Franco-Nevada has a consensus target price of $245.00, indicating a potential upside of 4.59%. Given Franco-Nevada’s stronger consensus rating and higher possible upside, analysts plainly believe Franco-Nevada is more favorable than Pelangio Exploration.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pelangio Exploration	N/A	-778.64%	-87.35%
Franco-Nevada	59.48%	13.94%	13.12%

Volatility and Risk

Pelangio Exploration has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Summary

Franco-Nevada beats Pelangio Exploration on 11 of the 11 factors compared between the two stocks.

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.

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.