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

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

Profitability

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

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

Risk and Volatility

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

Insider and Institutional Ownership

22.5% of Vizsla Silver shares are owned by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are owned by institutional investors. 7.9% of Vizsla Silver 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 company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Vizsla Silver and Franco-Nevada, as provided by MarketBeat.com.

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

Vizsla Silver presently has a consensus price target of $4.06, indicating a potential upside of 111.04%. Franco-Nevada has a consensus price target of $145.33, indicating a potential upside of 11.53%. Given Vizsla Silver’s stronger consensus rating and higher possible upside, analysts clearly believe Vizsla Silver is more favorable than Franco-Nevada.

Valuation and Earnings

This table compares Vizsla Silver 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
Vizsla Silver	N/A	N/A	-$11.81 million	($0.01)	-192.50
Franco-Nevada	$1.22 billion	20.58	-$466.40 million	($3.16)	-41.23

Vizsla Silver has higher earnings, but lower revenue 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.

Summary

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

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.

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.