Abitibi Royalties (CVE:RZZ) and Maverix Metals (TSE:MMX) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Profitability
This table compares Abitibi Royalties and Maverix Metals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Abitibi Royalties | N/A | N/A | N/A |
Maverix Metals | N/A | N/A | N/A |
Earnings and Valuation
This table compares Abitibi Royalties and Maverix Metals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Abitibi Royalties | C$1.26 million | 239.07 | C$21.08 million | C$1.69 | 14.29 |
Maverix Metals | C$51.68 million | 20.05 | C$30.18 million | C$0.21 | 34.35 |
Maverix Metals has higher revenue and earnings than Abitibi Royalties. Abitibi Royalties is trading at a lower price-to-earnings ratio than Maverix Metals, 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 Abitibi Royalties and Maverix Metals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Abitibi Royalties | 0 | 0 | 0 | 0 | N/A |
Maverix Metals | 0 | 0 | 2 | 0 | 3.00 |
Maverix Metals has a consensus price target of C$8.50, suggesting a potential upside of 15.65%. Given Maverix Metals' higher possible upside, analysts clearly believe Maverix Metals is more favorable than Abitibi Royalties.
Dividends
Abitibi Royalties pays an annual dividend of C$0.15 per share and has a dividend yield of 0.6%. Maverix Metals pays an annual dividend of C$0.04 per share and has a dividend yield of 0.5%. Abitibi Royalties pays out 8.7% of its earnings in the form of a dividend. Maverix Metals pays out 18.7% 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. Abitibi Royalties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Maverix Metals beats Abitibi Royalties on 5 of the 9 factors compared between the two stocks.