Newmont (NEM) Competitors

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

Does the media favor RGLD or NEM?

In the previous week, Newmont had 30 more articles in the media than Royal Gold. MarketBeat recorded 45 mentions for Newmont and 15 mentions for Royal Gold. Royal Gold's average media sentiment score of 1.50 beat Newmont's score of 1.07 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	11 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Newmont	28 Very Positive mention(s)	2 Positive mention(s)	11 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, RGLD or NEM?

Royal Gold has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Which has preferable earnings & valuation, 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	17.30	$332.02M	$6.82	27.72
Newmont	$20.58B	4.22	$3.35B	$5.57	14.21

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

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

Do analysts prefer RGLD or NEM?

Royal Gold presently has a consensus price target of $198.63, indicating a potential upside of 5.05%. Newmont has a consensus price target of $67.38, indicating a potential downside of 14.89%. Given Royal Gold's higher probable upside, equities analysts plainly 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)	8 Hold rating(s)	8 Buy rating(s)	4 Strong Buy rating(s)	2.71

Is RGLD or NEM more profitable?

Royal Gold has a net margin of 56.24% compared to Newmont's net margin of 30.50%. Newmont's return on equity of 17.86% beat Royal Gold's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royal Gold	56.24%	13.30%	12.32%
Newmont	30.50%	17.86%	9.90%

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 1.3%. Royal Gold pays out 26.4% of its earnings in the form of a dividend. Newmont pays out 18.0% 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 increased 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.