Comparing Eldorado Gold (OTCMKTS:ELDXF) and Franco-Nevada (NYSE:FNV)

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

Institutional & Insider Ownership

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

Earnings and Valuation

This table compares Franco-Nevada and Eldorado Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franco-Nevada	$1.11 billion	27.13	-$466.40 million	$2.86	54.87
Eldorado Gold	N/A	N/A	N/A	N/A	N/A

Eldorado Gold has lower revenue, but higher earnings than Franco-Nevada.

Profitability

This table compares Franco-Nevada and Eldorado Gold’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%
Eldorado Gold	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Franco-Nevada and Eldorado Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franco-Nevada	0	5	6	0	2.55
Eldorado Gold	0	0	0	0	0.00

Franco-Nevada currently has a consensus price target of $155.50, suggesting a potential downside of 0.90%. Given Eldorado Gold’s higher probable upside, analysts plainly believe Eldorado Gold is more favorable than Franco-Nevada.

Summary

Franco-Nevada beats Eldorado Gold on 7 of the 9 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 Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemcukuru gold mines located in western Turkey; 100% interest in Lamaque gold mines located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1992 and is headquartered in Vancouver, Canada.