Contrasting Franco-Nevada (NYSE:FNV) and Osisko Development (NYSE:ODV)

Osisko Development (NYSE:ODV) and Franco-Nevada (NYSE:FNV) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Institutional and Insider Ownership

15.2% of Osisko Development shares are owned by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are owned by institutional investors. 0.9% of Osisko Development shares are owned by company insiders. Comparatively, 0.7% of Franco-Nevada shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Osisko Development	-1,817.64%	-11.51%	-8.41%
Franco-Nevada	-55.28%	10.55%	10.09%

Valuation and Earnings

This table compares Osisko Development and Franco-Nevada”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osisko Development	$23.43 million	8.54	-$134.73 million	($1.81)	-0.81
Franco-Nevada	$1.22 billion	22.22	-$466.40 million	($3.16)	-44.52

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

Analyst Recommendations

This is a breakdown of recent recommendations for Osisko Development and Franco-Nevada, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osisko Development	0	0	0	0	0.00
Franco-Nevada	0	4	7	0	2.64

Franco-Nevada has a consensus target price of $146.71, indicating a potential upside of 4.28%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts clearly believe Franco-Nevada is more favorable than Osisko Development.

Risk and Volatility

Osisko Development has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

Franco-Nevada beats Osisko Development on 10 of the 13 factors compared between the two stocks.

About Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, 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.