Jaguar Mining (OTCMKTS:JAGGF) and Franco-Nevada (NYSE:FNV) Financial Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franco-Nevada	61.01%	15.62%	14.61%
Jaguar Mining	-11.66%	10.69%	7.31%

Dividends

Franco-Nevada pays an annual dividend of $1.76 per share and has a dividend yield of 0.8%. Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. Franco-Nevada pays out 30.6% of its earnings in the form of a dividend. Jaguar Mining pays out -16.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Franco-Nevada has increased its dividend for 2 consecutive years. Franco-Nevada is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Franco-Nevada has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Franco-Nevada and Jaguar Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	6	8	0	2.57
Jaguar Mining	0	0	0	0	0.00

Franco-Nevada presently has a consensus price target of $257.25, indicating a potential upside of 13.78%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts clearly believe Franco-Nevada is more favorable than Jaguar Mining.

Institutional and Insider Ownership

77.1% of Franco-Nevada shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by insiders. Comparatively, 0.6% of Jaguar Mining shares are held 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.82 billion	23.92	$1.11 billion	$5.76	39.25
Jaguar Mining	$135.17 million	2.97	-$15.78 million	($0.18)	-26.12

Franco-Nevada has higher revenue and earnings than Jaguar Mining. Jaguar 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.

Summary

Franco-Nevada beats Jaguar Mining on 15 of the 17 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 Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.