Head to Head Review: B2Gold (NYSE:BTG) & Gold Royalty (NYSE:GROY)

Gold Royalty (NYSE:GROY) and B2Gold (NYSE:BTG) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Insider & Institutional Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 61.4% of B2Gold shares are held by institutional investors. 1.2% of B2Gold shares 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.

Dividends

Gold Royalty pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. B2Gold pays an annual dividend of $0.08 per share and has a dividend yield of 2.6%. Gold Royalty pays out -50.0% of its earnings in the form of a dividend. B2Gold pays out -16.7% 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.

Volatility and Risk

Gold Royalty has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, B2Gold has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Valuation and Earnings

This table compares Gold Royalty and B2Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$10.10 million	26.15	-$26.76 million	($0.02)	-77.50
B2Gold	$1.90 billion	2.14	$10.10 million	($0.48)	-6.44

B2Gold has higher revenue and earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than B2Gold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Gold Royalty and B2Gold’s 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%
B2Gold	-33.12%	5.65%	4.06%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gold Royalty and B2Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	3	0	3.00
B2Gold	1	4	3	1	2.44

Gold Royalty currently has a consensus target price of $3.31, indicating a potential upside of 113.71%. B2Gold has a consensus target price of $4.21, indicating a potential upside of 36.33%. Given Gold Royalty’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gold Royalty is more favorable than B2Gold.

Summary

B2Gold beats Gold Royalty on 10 of the 16 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 B2Gold

B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.