Royal Gold (RGLD) Competitors

Royal Gold (NASDAQ:RGLD) and Newmont (NYSE:NEM) are both large-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends, media sentiment and valuation.

Which has better valuation and earnings, RGLD or NEM?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Gold	$719.40M	16.25	$332.02M	$6.04	29.41
Newmont	$18.68B	3.50	$3.35B	$4.46	13.19

Does the media favor RGLD or NEM?

In the previous week, Newmont had 15 more articles in the media than Royal Gold. MarketBeat recorded 31 mentions for Newmont and 16 mentions for Royal Gold. Newmont's average media sentiment score of 1.21 beat Royal Gold's score of 1.17 indicating that Newmont is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Royal Gold	11 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Newmont	23 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate RGLD or NEM?

Royal Gold currently has a consensus target price of $192.13, indicating a potential upside of 8.17%. Newmont has a consensus target price of $58.38, indicating a potential downside of 0.74%. Given Royal Gold's stronger consensus rating and higher probable upside, equities research analysts clearly believe Royal Gold is more favorable than Newmont.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	0 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.63
Newmont	1 Sell rating(s)	7 Hold rating(s)	7 Buy rating(s)	2 Strong Buy rating(s)	2.59

Which has more risk & volatility, RGLD or NEM?

Royal Gold has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Is RGLD or NEM more profitable?

Royal Gold has a net margin of 52.15% compared to Newmont's net margin of 25.77%. Newmont's return on equity of 15.75% beat Royal Gold's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royal Gold	52.15%	12.48%	11.52%
Newmont	25.77%	15.75%	8.52%

Do institutionals & insiders have more ownership in RGLD or NEM?

83.7% of Royal Gold shares are owned by institutional investors. Comparatively, 68.9% of Newmont shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by insiders. Comparatively, 0.1% of Newmont shares are owned by 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.

Is RGLD or NEM a better dividend stock?

Royal Gold pays an annual dividend of $1.80 per share and has a dividend yield of 1.0%. Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Royal Gold pays out 29.8% of its earnings in the form of a dividend. Newmont pays out 22.4% 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. Royal Gold has raised its dividend for 25 consecutive years. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Royal Gold beats Newmont on 11 of the 20 factors compared between the two stocks.