Newmont (NEM) Competitors

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

Do analysts recommend NEM or RGLD?

Newmont presently has a consensus target price of $58.38, suggesting a potential downside of 1.51%. Royal Gold has a consensus target price of $192.13, suggesting a potential upside of 7.39%. Given Royal Gold's stronger consensus rating and higher probable upside, analysts plainly believe Royal Gold is more favorable than Newmont.

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

Is NEM or RGLD 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
Newmont	25.77%	15.75%	8.52%
Royal Gold	52.15%	12.48%	11.52%

Which has preferable earnings and valuation, NEM or RGLD?

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
Newmont	$18.68B	3.53	$3.35B	$4.46	13.29
Royal Gold	$719.40M	16.37	$332.02M	$6.04	29.62

Is NEM or RGLD a better dividend stock?

Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Royal Gold pays an annual dividend of $1.80 per share and has a dividend yield of 1.0%. Newmont pays out 22.4% of its earnings in the form of a dividend. Royal Gold pays out 29.8% 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.

Does the media favor NEM or RGLD?

In the previous week, Newmont had 21 more articles in the media than Royal Gold. MarketBeat recorded 34 mentions for Newmont and 13 mentions for Royal Gold. Newmont's average media sentiment score of 1.21 beat Royal Gold's score of 1.20 indicating that Newmont is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Newmont	27 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Royal Gold	10 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility & risk, NEM or RGLD?

Newmont has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Royal Gold has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

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

68.9% of Newmont shares are held by institutional investors. Comparatively, 83.7% of Royal Gold shares are held by institutional investors. 0.1% of Newmont shares are held by insiders. Comparatively, 0.5% of Royal Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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