Critical Review: Franklin Mining (OTCMKTS:FMNJ) and NexGen Energy (NYSE:NXE)

Franklin Mining (OTCMKTS:FMNJ) and NexGen Energy (NYSE:NXE) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

Franklin Mining has a beta of -0.51, suggesting that its stock price is 151% less volatile than the S&P 500. Comparatively, NexGen Energy has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Franklin Mining and NexGen Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Mining	0	0	0	0	0.00
NexGen Energy	1	1	4	1	2.71

Earnings & Valuation

This table compares Franklin Mining and NexGen Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Mining	N/A	N/A	-$430,000.00	($0.03)	-0.13
NexGen Energy	N/A	N/A	-$56.60 million	($0.41)	-32.42

NexGen Energy is trading at a lower price-to-earnings ratio than Franklin Mining, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

42.4% of NexGen Energy shares are owned by institutional investors. 20.0% of Franklin Mining shares are owned by company insiders. Comparatively, 5.6% of NexGen Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Franklin Mining and NexGen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Mining	N/A	N/A	N/A
NexGen Energy	N/A	-21.35%	-14.24%

Summary

Franklin Mining beats NexGen Energy on 6 of the 11 factors compared between the two stocks.

About Franklin Mining

Franklin Mining, Inc., a mining and exploration company, acquires and develops mineral properties. The company explores for gold, silver, lead, and zinc deposits. It owns interests in the La Joya mining concession in Bolivia; and Madre de Dios Area, Ch-Mine, and Los Totems project in Peru. The company was formerly known as WCM Capital, Inc. Franklin Mining, Inc. was founded in 1864 and is based in Carson City, Nevada.

About NexGen Energy

NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.