Contrasting Franco-Nevada (NYSE:FNV) & Vizsla Silver (NYSE:VZLA)

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

Earnings and Valuation

This table compares Franco-Nevada and Vizsla Silver”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.22 billion	21.52	-$466.40 million	($3.16)	-43.13
Vizsla Silver	N/A	N/A	-$11.81 million	($0.01)	-206.00

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

Institutional and Insider Ownership

77.1% of Franco-Nevada shares are owned by institutional investors. Comparatively, 22.5% of Vizsla Silver shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by insiders. Comparatively, 7.9% of Vizsla Silver 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Franco-Nevada and Vizsla Silver, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	3	7	0	2.70
Vizsla Silver	0	0	5	0	3.00

Franco-Nevada currently has a consensus target price of $145.33, suggesting a potential upside of 6.63%. Vizsla Silver has a consensus target price of $4.06, suggesting a potential upside of 97.21%. Given Vizsla Silver’s stronger consensus rating and higher possible upside, analysts clearly believe Vizsla Silver is more favorable than Franco-Nevada.

Risk and Volatility

Franco-Nevada has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Vizsla Silver has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franco-Nevada	-55.28%	10.55%	10.09%
Vizsla Silver	N/A	-5.59%	-5.52%

Summary

Vizsla Silver beats Franco-Nevada on 7 of the 13 factors compared between 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 Vizsla Silver

Vizsla Silver Corp. engages in the exploration, and development of precious and base metal assets. The company explores for gold, silver, and copper deposits. It owns 100% interest in the Panuco Project covering an area of 7,189.5 hectares located in located in southern Sinaloa, Mexico. The company was formerly known as Vizsla Resources Corp. and changed its name to Vizsla Silver Corp. in February 2021. Vizsla Silver Corp. was incorporated in 2017 and is headquartered in Vancouver, Canada.