Head to Head Comparison: Gold Royalty (NYSE:GROY) & Agnico Eagle Mines (NYSE:AEM)

Gold Royalty (NYSE:GROY) and Agnico Eagle Mines (NYSE:AEM) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Risk and Volatility

Gold Royalty has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Gold Royalty and Agnico Eagle Mines”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	$3.05 million	81.49	-$26.76 million	($0.13)	-11.31
Agnico Eagle Mines	$6.63 billion	7.64	$1.94 billion	$2.00	50.40

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gold Royalty and Agnico Eagle Mines, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	3	0	3.00
Agnico Eagle Mines	0	1	6	0	2.86

Gold Royalty currently has a consensus price target of $3.31, suggesting a potential upside of 125.34%. Agnico Eagle Mines has a consensus price target of $92.75, suggesting a potential downside of 7.99%. Given Gold Royalty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gold Royalty is more favorable than Agnico Eagle Mines.

Institutional & Insider Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 68.3% of Agnico Eagle Mines shares are held by institutional investors. 0.5% of Agnico Eagle Mines shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Gold Royalty and Agnico Eagle Mines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Royalty	-252.16%	0.46%	0.35%
Agnico Eagle Mines	12.86%	8.88%	6.06%

Summary

Agnico Eagle Mines beats Gold Royalty on 11 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 Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.