Head to Head Contrast: Royal Gold (RGLD) versus Its Rivals

Royal Gold (NASDAQ:RGLD) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it weigh in compared to its rivals? We will compare Royal Gold to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Dividends

Royal Gold pays an annual dividend of $1.90 per share and has a dividend yield of 0.8%. Royal Gold pays out 20.7% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.8% and pay out 10.8% of their earnings in the form of a dividend. Royal Gold has increased its dividend for 25 consecutive years. Royal Gold lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Royal Gold and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Gold	47.74%	12.06%	9.41%
Royal Gold Competitors	-1,168,050,136,845,918,000.00%	-53.09%	-2.11%

Valuation and Earnings

This table compares Royal Gold and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Royal Gold	$1.55 billion	$467.27 million	25.77
Royal Gold Competitors	$174.78 billion	$279.69 million	-46.17

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

Analyst Ratings

This is a summary of recent ratings and target prices for Royal Gold and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	0	3	8	0	2.73
Royal Gold Competitors	6401	22581	32280	1794	2.47

Royal Gold presently has a consensus target price of $309.56, indicating a potential upside of 31.16%. As a group, “Metals & Mining” companies have a potential upside of 34.15%. Given Royal Gold’s rivals higher probable upside, analysts clearly believe Royal Gold has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

83.7% of Royal Gold shares are owned by institutional investors. Comparatively, 16.0% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.4% of Royal Gold shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Royal Gold has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Royal Gold’s rivals have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Summary

Royal Gold beats its rivals on 8 of the 15 factors compared.

Royal Gold Company Profile

Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests. The company engages in acquiring stream and royalty interests or to finance projects that are in production, development, or in the exploration stage in exchange for stream or royalty interests, which primarily consists of gold, silver, copper, nickel, zinc, lead, and other metals. Its stream and royalty interests on properties are located in the United States, Canada, Chile, the Dominican Republic, Australia, Africa, Mexico, Botswana, and internationally. Royal Gold, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.