Comparing Fresnillo (OTCMKTS:FNLPF) and Vista Gold (NYSE:VGZ)

Fresnillo (OTCMKTS:FNLPF) and Vista Gold (NYSE:VGZ) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares Fresnillo and Vista Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresnillo	N/A	N/A	N/A
Vista Gold	N/A	-94.57%	-76.38%

Institutional and Insider Ownership

27.3% of Vista Gold shares are owned by institutional investors. 4.2% of Vista Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Fresnillo and Vista Gold’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresnillo	$2.71 billion	N/A	$233.91 million	N/A	N/A
Vista Gold	N/A	N/A	-$6.59 million	($0.05)	-10.79

Fresnillo has higher revenue and earnings than Vista Gold.

Analyst Recommendations

This is a summary of recent ratings for Fresnillo and Vista Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresnillo	0	0	0	0	N/A
Vista Gold	0	0	1	0	3.00

Fresnillo presently has a consensus target price of $1,175.00, suggesting a potential upside of 15,778.38%. Vista Gold has a consensus target price of $2.50, suggesting a potential upside of 363.48%. Given Fresnillo’s higher probable upside, equities research analysts clearly believe Fresnillo is more favorable than Vista Gold.

Volatility and Risk

Fresnillo has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Vista Gold has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Summary

Fresnillo beats Vista Gold on 5 of the 9 factors compared between the two stocks.

About Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.

About Vista Gold

Vista Gold Corp., together with its subsidiaries, acquires, explores, evaluates, and advances gold exploration and development projects in Australia. Its flagship asset is the 100% owned Mt Todd gold project located in Northern Territory, Australia. The company was incorporated in 1983 and is based in Englewood, Colorado.