Reviewing Gold Royalty (NYSE:GROY) and SilverCrest Metals (NYSE:SILV)

Gold Royalty (NYSE:GROY) and SilverCrest Metals (NYSE:SILV) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Valuation & Earnings

This table compares Gold Royalty and SilverCrest Metals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$6.50 million	35.37	-$26.76 million	($0.17)	-8.00
SilverCrest Metals	$245.13 million	5.61	$116.72 million	$0.83	11.15

SilverCrest Metals has higher revenue and earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than SilverCrest Metals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 44.8% of SilverCrest Metals shares are held by institutional investors. 4.1% of SilverCrest Metals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Gold Royalty and SilverCrest Metals’ 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%
SilverCrest Metals	40.61%	25.66%	23.23%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Gold Royalty and SilverCrest Metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	2	0	3.00
SilverCrest Metals	0	1	1	0	2.50

Gold Royalty presently has a consensus target price of $3.67, suggesting a potential upside of 169.61%. SilverCrest Metals has a consensus target price of $10.13, suggesting a potential upside of 9.40%. Given Gold Royalty’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gold Royalty is more favorable than SilverCrest Metals.

Risk & Volatility

Gold Royalty has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, SilverCrest Metals has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Summary

SilverCrest Metals beats Gold Royalty on 10 of the 14 factors compared between the two stocks.

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.

About SilverCrest Metals

SilverCrest Metals Inc. engages in the acquiring, exploration, and development of precious metal properties in Mexico. The company primarily explores for silver and gold properties. Its focuses on principal property the Las Chispas Mine that consists of 28 concessions totaling of approximately 1,401 hectares located in Sonora, Mexico, as well as operates a portfolio of El Picacho, Cruz de Mayo, and Angel de Plata properties in Sonora Mexico. The company was incorporated in 2015 and is headquartered in Vancouver, Canada.