DRDGOLD (NYSE:DRD) and Osisko Gold Royalties (NYSE:OR) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Volatility and Risk
DRDGOLD has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Osisko Gold Royalties has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for DRDGOLD and Osisko Gold Royalties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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DRDGOLD | 0 | 0 | 1 | 0 | 3.00 |
Osisko Gold Royalties | 0 | 2 | 7 | 0 | 2.78 |
DRDGOLD presently has a consensus target price of $19.00, suggesting a potential upside of 114.93%. Osisko Gold Royalties has a consensus target price of $20.7143, suggesting a potential upside of 94.87%. Given DRDGOLD's stronger consensus rating and higher possible upside, research analysts clearly believe DRDGOLD is more favorable than Osisko Gold Royalties.
Insider & Institutional Ownership
16.0% of DRDGOLD shares are owned by institutional investors. Comparatively, 51.4% of Osisko Gold Royalties shares are owned by institutional investors. 1.0% of DRDGOLD shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares DRDGOLD and Osisko Gold Royalties' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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DRDGOLD | N/A | N/A | N/A |
Osisko Gold Royalties | -72.90% | 2.66% | 2.00% |
Dividends
DRDGOLD pays an annual dividend of $0.59 per share and has a dividend yield of 6.6%. Osisko Gold Royalties pays an annual dividend of $0.15 per share and has a dividend yield of 1.4%. DRDGOLD pays out 113.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Osisko Gold Royalties pays out 71.4% of its earnings in the form of a dividend. DRDGOLD has raised its dividend for 1 consecutive years and Osisko Gold Royalties has raised its dividend for 1 consecutive years.
Earnings and Valuation
This table compares DRDGOLD and Osisko Gold Royalties' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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DRDGOLD | $269.51 million | 2.27 | $40.89 million | $0.52 | 17.15 |
Osisko Gold Royalties | $295.86 million | 6.06 | $-176,490,000.00 | $0.21 | 51.00 |
DRDGOLD has higher earnings, but lower revenue than Osisko Gold Royalties. DRDGOLD is trading at a lower price-to-earnings ratio than Osisko Gold Royalties, indicating that it is currently the more affordable of the two stocks.
Summary
DRDGOLD beats Osisko Gold Royalties on 9 of the 16 factors compared between the two stocks.