Analyzing Gold Royalty (GROY) and The Competition

Gold Royalty (NYSE:GROY) is one of 111 publicly-traded companies in the “Gold & silver ores” industry, but how does it weigh in compared to its peers? We will compare Gold Royalty to similar companies based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, profitability, valuation and risk.

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 -14.2% and pay out -896.7% of their earnings in the form of a dividend.

Risk and Volatility

Gold Royalty has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Gold Royalty’s peers have a beta of 1.00, suggesting that their average share price is 0% more volatile than the S&P 500.

Profitability

This table compares Gold Royalty and its peers’ 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	-40.63%	-8.14%	1.32%

Earnings and Valuation

This table compares Gold Royalty and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gold Royalty	$6.50 million	-$26.76 million	-8.06
Gold Royalty Competitors	$4.55 billion	-$67.75 million	3.28

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

Analyst Ratings

This is a breakdown of current ratings for Gold Royalty and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	2	0	3.00
Gold Royalty Competitors	1115	3601	4455	117	2.38

Gold Royalty presently has a consensus price target of $3.67, suggesting a potential upside of 167.64%. As a group, “Gold & silver ores” companies have a potential upside of 20.15%. Given Gold Royalty’s stronger consensus rating and higher possible upside, research analysts plainly believe Gold Royalty is more favorable than its peers.

Insider and Institutional Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 35.1% of shares of all “Gold & silver ores” companies are held by institutional investors. 7.0% of shares of all “Gold & silver ores” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Gold Royalty peers beat Gold Royalty on 9 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.