Gold Resource (NYSE:GORO – Get Free Report) and Gold Royalty (NYSE:GROY – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Earnings & Valuation
This table compares Gold Resource and Gold Royalty”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Gold Resource | $81.18 million | 0.39 | -$16.02 million | ($0.21) | -1.67 |
Gold Royalty | $6.50 million | 36.41 | -$26.76 million | ($0.17) | -8.24 |
Gold Resource has higher revenue and earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than Gold Resource, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
Profitability
This table compares Gold Resource and Gold Royalty’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Gold Resource | -51.93% | -27.52% | -13.63% |
Gold Royalty | -381.76% | -0.53% | -0.40% |
Dividends
Gold Resource pays an annual dividend of $0.04 per share and has a dividend yield of 11.4%. Gold Royalty pays an annual dividend of $0.01 per share and has a dividend yield of 0.7%. Gold Resource pays out -19.0% of its earnings in the form of a dividend. Gold Royalty pays out -5.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gold Resource is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Gold Resource has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Gold Resource and Gold Royalty, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Gold Resource | 0 | 0 | 1 | 0 | 3.00 |
Gold Royalty | 0 | 0 | 2 | 0 | 3.00 |
Gold Resource presently has a consensus price target of $1.75, indicating a potential upside of 398.72%. Gold Royalty has a consensus price target of $3.67, indicating a potential upside of 161.90%. Given Gold Resource’s higher probable upside, equities research analysts clearly believe Gold Resource is more favorable than Gold Royalty.
Summary
Gold Resource beats Gold Royalty on 9 of the 15 factors compared between the two stocks.
About Gold Resource
Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.
About Gold Royalty
Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.
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