Analyzing Gold Royalty (GROY) and The Competition

Gold Royalty (NYSE:GROY) is one of 102 public companies in the “Gold & silver ores” industry, but how does it contrast to its competitors? We will compare Gold Royalty to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Volatility and Risk

Gold Royalty has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Gold Royalty’s competitors have a beta of 1.03, suggesting that their average stock price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Gold Royalty and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	2	0	3.00
Gold Royalty Competitors	1037	3267	4060	103	2.38

Gold Royalty currently has a consensus price target of $3.67, indicating a potential upside of 159.13%. As a group, “Gold & silver ores” companies have a potential upside of 19.51%. Given Gold Royalty’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Gold Royalty is more favorable than its competitors.

Earnings & Valuation

This table compares Gold Royalty and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gold Royalty	$6.50 million	-$26.76 million	-8.32
Gold Royalty Competitors	$4.67 billion	-$28.94 million	-5.29

Gold Royalty’s competitors have higher revenue, but lower earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Gold Royalty and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Royalty	-381.76%	-0.53%	-0.40%
Gold Royalty Competitors	-40.87%	4.37%	3.46%

Dividends

Gold Royalty pays an annual dividend of $0.01 per share and has a dividend yield of 0.7%. Gold Royalty pays out -5.9% of its earnings in the form of a dividend. As a group, “Gold & silver ores” companies pay a dividend yield of -17.6% and pay out -1,502.9% of their earnings in the form of a dividend.

Insider and Institutional Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 34.4% of shares of all “Gold & silver ores” companies are held by institutional investors. 7.4% of shares of all “Gold & silver ores” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Gold Royalty competitors beat Gold Royalty on 10 of the 15 factors compared.

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.