Analyzing Franco-Nevada (NYSE:FNV) & Dakota Territory Resource (OTCMKTS:DTRC)

Dakota Territory Resource (OTCMKTS:DTRC) 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 institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Insider and Institutional Ownership

77.1% of Franco-Nevada shares are held by institutional investors. 59.3% of Dakota Territory Resource shares are held by insiders. Comparatively, 0.7% of Franco-Nevada shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Dakota Territory Resource and Franco-Nevada”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dakota Territory Resource	N/A	N/A	N/A	N/A	N/A
Franco-Nevada	$1.11 billion	37.39	$552.10 million	$4.77	45.28

Franco-Nevada has higher revenue and earnings than Dakota Territory Resource.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Dakota Territory Resource and Franco-Nevada, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dakota Territory Resource	0	0	0	0	0.00
Franco-Nevada	0	6	7	1	2.64

Franco-Nevada has a consensus target price of $232.75, indicating a potential upside of 7.75%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts clearly believe Franco-Nevada is more favorable than Dakota Territory Resource.

Profitability

This table compares Dakota Territory Resource and Franco-Nevada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dakota Territory Resource	N/A	N/A	N/A
Franco-Nevada	59.48%	13.94%	13.12%

Summary

Franco-Nevada beats Dakota Territory Resource on 9 of the 10 factors compared between the two stocks.

About Dakota Territory Resource

Dakota Territory Resource Corp., an exploration stage company, engages in the acquisition, exploration, and development of gold properties in the United States. It holds 100% interests in eight mineral properties, including the Blind Gold, City Creek, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, and Homestake Paleoplacer properties covering an area of approximately 19,500 acres located in the Black Hills of South Dakota. The company was formerly known as Mustang Geothermal Corp and changed its name to Dakota Territory Resource Corp. in September 2012. Dakota Territory Resource Corp. was incorporated in 2002 and is headquartered in Lead, South Dakota.

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.