WallStSmart

DRDGOLD Limited ADR (DRD)vsFranco-Nevada Corporation (FNV)

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Smart Verdict

WallStSmart Research — data-driven comparison

DRDGOLD Limited ADR generates 406% more annual revenue ($9.13B vs $1.80B). FNV leads profitability with a 61.6% profit margin vs 35.1%. DRD appears more attractively valued with a PEG of 1.00. DRD earns a higher WallStSmart Score of 82/100 (A-).

DRD

Exceptional Buy

82

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 10.0Quality: 9.0
Piotroski: 4/9Altman Z: 3.45

FNV

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 9.0Value: 6.0Quality: 9.0
Piotroski: 4/9Altman Z: 12.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRDUndervalued (+48.6%)

Margin of Safety

+48.6%

Fair Value

$70.67

Current Price

$27.91

$42.76 discount

UndervaluedFair: $70.67Overvalued
FNVUndervalued (+6.0%)

Margin of Safety

+6.0%

Fair Value

$274.25

Current Price

$233.67

$40.58 discount

UndervaluedFair: $274.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRD6 strengths · Avg: 10.0/10
Return on EquityProfitability
34.7%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
35.1%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Revenue GrowthGrowth
32.9%10/10

Revenue surging 32.9% year-over-year

EPS GrowthGrowth
97.9%10/10

Earnings expanding 97.9% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

FNV6 strengths · Avg: 10.0/10
Profit MarginProfitability
61.6%10/10

Keeps 62 of every $100 in revenue as profit

Operating MarginProfitability
76.1%10/10

Strong operational efficiency at 76.1%

Revenue GrowthGrowth
85.8%10/10

Revenue surging 85.8% year-over-year

EPS GrowthGrowth
108.8%10/10

Earnings expanding 108.8% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
12.1810/10

Safe zone — low bankruptcy risk

Areas to Watch

DRD0 concerns · Avg: 0/10

No major concerns identified

FNV3 concerns · Avg: 2.7/10
P/E RatioValuation
39.4x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
11.812/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.73B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DRD

The strongest argument for DRD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 35.1% and operating margin at 46.3%. Revenue growth of 32.9% demonstrates continued momentum.

Bull Case : FNV

The strongest argument for FNV centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 61.6% and operating margin at 76.1%. Revenue growth of 85.8% demonstrates continued momentum.

Bear Case : DRD

No major red flags identified for DRD, but monitor valuation.

Bear Case : FNV

The primary concerns for FNV are P/E Ratio, PEG Ratio, Free Cash Flow.

Key Dynamics to Monitor

FNV carries more volatility with a beta of 0.90 — expect wider price swings.

FNV is growing revenue faster at 85.8% — sustainability is the question.

DRD generates stronger free cash flow (627M), providing more financial flexibility.

Monitor GOLD industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRD scores higher overall (82/100 vs 68/100), backed by strong 35.1% margins and 32.9% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

DRDGOLD Limited ADR

BASIC MATERIALS · GOLD · USA

DRDGOLD Limited, a gold mining company, is engaged in the surface gold tailings retreatment business in South Africa. The company is headquartered in Johannesburg, South Africa.

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Franco-Nevada Corporation

BASIC MATERIALS · GOLD · USA

Franco-Nevada Corporation is a gold-focused royalty and flow company in the United States, Latin America, Canada, Australia, Europe and Africa, and internationally. The company is headquartered in Toronto, Canada.

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