Critical Contrast: Fortescue (OTCMKTS:FSUGY) & Fortuna Mining (NYSE:FSM)

Fortuna Mining (NYSE:FSM) and Fortescue (OTCMKTS:FSUGY) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

33.8% of Fortuna Mining shares are held by institutional investors. 1.0% of Fortuna Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Fortuna Mining and Fortescue’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortuna Mining	14.36%	12.74%	8.99%
Fortescue	N/A	N/A	N/A

Valuation & Earnings

This table compares Fortuna Mining and Fortescue”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortuna Mining	$1.06 billion	2.18	$128.74 million	$0.50	15.11
Fortescue	$18.22 billion	2.16	$5.68 billion	N/A	N/A

Fortescue has higher revenue and earnings than Fortuna Mining.

Analyst Ratings

This is a summary of recent recommendations and price targets for Fortuna Mining and Fortescue, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortuna Mining	1	4	1	0	2.00
Fortescue	1	1	0	1	2.33

Fortuna Mining presently has a consensus target price of $8.00, suggesting a potential upside of 5.89%. Given Fortuna Mining’s higher probable upside, research analysts plainly believe Fortuna Mining is more favorable than Fortescue.

Risk and Volatility

Fortuna Mining has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Fortescue has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Summary

Fortuna Mining beats Fortescue on 8 of the 13 factors compared between the two stocks.

About Fortuna Mining

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.

About Fortescue

Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.