Newmont (NEM) Competitors

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

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%

Which has stronger valuation & 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	16.24	$332.02M	$6.82	26.02
Newmont	$18.68B	4.15	$3.35B	$5.57	12.69

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 1.4%. 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 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 refer more to RGLD or NEM?

In the previous week, Newmont had 6 more articles in the media than Royal Gold. MarketBeat recorded 32 mentions for Newmont and 26 mentions for Royal Gold. Newmont's average media sentiment score of 1.57 beat Royal Gold's score of 0.96 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	12 Very Positive mention(s)	6 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Newmont	31 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Do analysts prefer RGLD or NEM?

Royal Gold currently has a consensus target price of $198.63, indicating a potential upside of 11.94%. Newmont has a consensus target price of $64.58, indicating a potential downside of 8.61%. 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)	6 Hold rating(s)	8 Buy rating(s)	4 Strong Buy rating(s)	2.79

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

83.7% of Royal Gold shares are held by institutional investors. Comparatively, 68.9% of Newmont shares are held by institutional investors. 0.5% of Royal Gold shares are held by company insiders. Comparatively, 0.1% of Newmont shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Which has more risk and volatility, RGLD or NEM?

Royal Gold has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Summary

Royal Gold and Newmont tied by winning 10 of the 20 factors compared between the two stocks.