Royal Gold (NASDAQ:RGLD – Get Free Report) and Orosur Mining (OTCMKTS:OROXF – Get Free Report) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
83.7% of Royal Gold shares are held by institutional investors. 0.5% of Royal Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Royal Gold and Orosur Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Royal Gold | 56.24% | 13.30% | 12.32% |
| Orosur Mining | N/A | N/A | -36.80% |
Risk and Volatility
Valuation and Earnings
This table compares Royal Gold and Orosur Mining”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Royal Gold | $719.40 million | 16.25 | $332.02 million | $6.82 | 26.04 |
| Orosur Mining | N/A | N/A | $9.94 million | $0.06 | 4.10 |
Royal Gold has higher revenue and earnings than Orosur Mining. Orosur Mining is trading at a lower price-to-earnings ratio than Royal Gold, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Royal Gold and Orosur Mining, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Royal Gold | 1 | 1 | 7 | 1 | 2.80 |
| Orosur Mining | 0 | 0 | 0 | 0 | 0.00 |
Royal Gold presently has a consensus target price of $220.44, indicating a potential upside of 24.13%. Given Royal Gold’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Royal Gold is more favorable than Orosur Mining.
Summary
Royal Gold beats Orosur Mining on 13 of the 14 factors compared between the two stocks.
About Royal Gold
Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests. The company engages in acquiring stream and royalty interests or to finance projects that are in production, development, or in the exploration stage in exchange for stream or royalty interests, which primarily consists of gold, silver, copper, nickel, zinc, lead, and other metals. Its stream and royalty interests on properties are located in the United States, Canada, Chile, the Dominican Republic, Australia, Africa, Mexico, Botswana, and internationally. Royal Gold, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.
About Orosur Mining
Orosur Mining Inc. engages in identifying and advancing mineral projects in South America. Its flagship project is the Anzá gold project located in the Middle Cauca Belt in northern Colombia. The company was formerly known as Uruguay Mineral Exploration Inc. and changed its name to Orosur Mining Inc. in January 2010. Orosur Mining Inc. was incorporated in 1996 and is based in Toronto, Canada.
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