Contrasting Copper Mountain Mining (OTCMKTS:CPPMF) and Franco-Nevada (NYSE:FNV)

Copper Mountain Mining (OTCMKTS:CPPMFGet Rating) and Franco-Nevada (NYSE:FNVGet Rating) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and price targets for Copper Mountain Mining and Franco-Nevada, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Copper Mountain Mining 0 2 2 0 2.50
Franco-Nevada 1 3 5 0 2.44

Copper Mountain Mining presently has a consensus price target of $2.71, indicating a potential upside of 59.31%. Franco-Nevada has a consensus price target of $168.63, indicating a potential upside of 15.30%. Given Copper Mountain Mining’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Copper Mountain Mining is more favorable than Franco-Nevada.

Volatility & Risk

Copper Mountain Mining has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Earnings & Valuation

This table compares Copper Mountain Mining and Franco-Nevada’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Copper Mountain Mining $461.31 million 0.78 $83.06 million ($0.06) -28.33
Franco-Nevada $1.30 billion 21.59 $733.70 million $3.95 37.03

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

Profitability

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

Net Margins Return on Equity Return on Assets
Copper Mountain Mining -2.87% -0.97% -0.44%
Franco-Nevada 57.18% 11.27% 10.94%

Insider & Institutional Ownership

66.7% 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.

Summary

Franco-Nevada beats Copper Mountain Mining on 11 of the 14 factors compared between the two stocks.

About Copper Mountain Mining

(Get Rating)

Copper Mountain Mining Corp. engages in the exploration, development and operation of mineral deposits. It holds interest in copper mountain mine, Eva Copper, New Ingerbelle and Cameron copper projects. The company was founded on April 20, 2006 and is headquartered in Vancouver, Canada.

About Franco-Nevada

(Get Rating)

Franco-Nevada Corp. engages in the management of gold-focused royalties and streams portfolio. It provides investors with gold price and exploration optionality while limiting exposure to many of the risks of operating companies. The company was founded in 1983 and is headquartered in Toronto, Canada.

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