Gold Royalty (NYSE:GROY – Get Free Report) and Coeur Mining (NYSE:CDE – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Valuation and Earnings
This table compares Gold Royalty and Coeur Mining”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 | $7.76 million | 27.00 | -$26.76 million | ($0.13) | -9.54 |
| Coeur Mining | $1.01 billion | 2.54 | -$103.61 million | ($0.03) | -214.33 |
Gold Royalty has higher earnings, but lower revenue than Coeur Mining. Coeur Mining is trading at a lower price-to-earnings ratio than Gold Royalty, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gold Royalty | 0 | 0 | 3 | 0 | 3.00 |
| Coeur Mining | 0 | 1 | 4 | 1 | 3.00 |
Gold Royalty presently has a consensus price target of $3.25, indicating a potential upside of 162.10%. Coeur Mining has a consensus price target of $7.81, indicating a potential upside of 21.50%. Given Gold Royalty’s higher probable upside, equities research analysts plainly believe Gold Royalty is more favorable than Coeur Mining.
Risk & Volatility
Gold Royalty has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Coeur Mining has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Profitability
This table compares Gold Royalty and Coeur Mining’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% |
| Coeur Mining | -0.44% | 1.78% | 0.86% |
Institutional and Insider Ownership
33.8% of Gold Royalty shares are owned by institutional investors. Comparatively, 63.0% of Coeur Mining shares are owned by institutional investors. 1.6% of Coeur Mining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Coeur Mining 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 Coeur Mining
Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company primarily explores for gold, silver, zinc, and lead properties. It markets and sells its concentrates to third-party customers, smelters, under off-take agreements. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was incorporated in 1928 and is headquartered in Chicago, Illinois.
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