Royal Gold (RGLD) Competitors

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

Does the media prefer RGLD or NEM?

In the previous week, Newmont had 20 more articles in the media than Royal Gold. MarketBeat recorded 41 mentions for Newmont and 21 mentions for Royal Gold. Royal Gold's average media sentiment score of 1.14 beat Newmont's score of 0.99 indicating that Royal Gold is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Royal Gold	14 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Newmont	24 Very Positive mention(s)	2 Positive mention(s)	9 Neutral mention(s)	2 Negative mention(s)	2 Very Negative mention(s)	Positive

Which has better valuation and earnings, RGLD or NEM?

Royal Gold has higher earnings, but lower revenue than Newmont. 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	$763.93M	14.74	$332.02M	$6.04	28.33
Newmont	$19.67B	2.83	-$2.49B	$4.46	11.23

Does the MarketBeat Community prefer RGLD or NEM?

Newmont received 170 more outperform votes than Royal Gold when rated by MarketBeat users. However, 69.94% of users gave Royal Gold an outperform vote while only 63.21% of users gave Newmont an outperform vote.

Company	Underperform	Outperform
Royal Gold	Outperform Votes 763 69.94%	Underperform Votes 328 30.06%
Newmont	Outperform Votes 933 63.21%	Underperform Votes 543 36.79%

Is RGLD or NEM more profitable?

Royal Gold has a net margin of 46.15% compared to Newmont's net margin of 17.92%. Newmont's return on equity of 13.52% beat Royal Gold's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royal Gold	46.15%	11.46%	10.44%
Newmont	17.92%	13.52%	7.16%

Do analysts rate RGLD or NEM?

Royal Gold presently has a consensus target price of $183.00, suggesting a potential upside of 6.93%. Newmont has a consensus target price of $56.52, suggesting a potential upside of 12.83%. Given Newmont's stronger consensus rating and higher possible upside, analysts clearly believe Newmont is more favorable than Royal Gold.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	1 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.44
Newmont	1 Sell rating(s)	7 Hold rating(s)	8 Buy rating(s)	3 Strong Buy rating(s)	2.68

Which has more risk and volatility, RGLD or NEM?

Royal Gold has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Do insiders & institutionals hold more shares of RGLD or NEM?

83.7% of Royal Gold shares are owned by institutional investors. Comparatively, 68.8% of Newmont shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by company insiders. Comparatively, 0.1% of Newmont shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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 1.1%. Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. 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 12 of the 22 factors compared between the two stocks.