Fresnillo (OTCMKTS:FNLPF) and Vista Gold (NYSE:VGZ) Financial Analysis

Vista Gold (NYSE:VGZ) and Fresnillo (OTCMKTS:FNLPF) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Vista Gold and Fresnillo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vista Gold	0	0	1	0	3.00
Fresnillo	0	0	0	0	N/A

Vista Gold currently has a consensus target price of $2.50, suggesting a potential upside of 403.32%. Fresnillo has a consensus target price of $1,175.00, suggesting a potential upside of 16,262.62%. Given Fresnillo’s higher possible upside, analysts plainly believe Fresnillo is more favorable than Vista Gold.

Valuation and Earnings

This table compares Vista Gold and Fresnillo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vista Gold	N/A	N/A	-$6.59 million	($0.05)	-9.93
Fresnillo	$2.71 billion	N/A	$233.91 million	N/A	N/A

Fresnillo has higher revenue and earnings than Vista Gold.

Risk & Volatility

Vista Gold has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Fresnillo has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

27.3% of Vista Gold shares are owned by institutional investors. 4.2% of Vista Gold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Vista Gold and Fresnillo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vista Gold	N/A	-94.57%	-76.38%
Fresnillo	N/A	N/A	N/A

Summary

Fresnillo beats Vista Gold on 5 of the 9 factors compared between the two stocks.

About Vista Gold

Vista Gold Corp., together with its subsidiaries, acquires, explores, evaluates, and advances gold exploration and development projects in Australia. Its flagship asset is the 100% owned Mt Todd gold project located in Northern Territory, Australia. The company was incorporated in 1983 and is based in Englewood, Colorado.

About Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.