Comparing Royal Gold (NASDAQ:RGLD) and Augusta Gold (OTCMKTS:AUGG)

Augusta Gold (OTCMKTS:AUGG) and Royal Gold (NASDAQ:RGLD) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Augusta Gold and Royal Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Augusta Gold	0	0	0	0	0.00
Royal Gold	1	1	8	1	2.82

Royal Gold has a consensus target price of $234.60, indicating a potential upside of 15.49%. Given Royal Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Royal Gold is more favorable than Augusta Gold.

Institutional and Insider Ownership

52.4% of Augusta Gold shares are held by institutional investors. Comparatively, 83.7% of Royal Gold shares are held by institutional investors. 45.8% of Augusta Gold shares are held by insiders. Comparatively, 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 will outperform the market over the long term.

Volatility & Risk

Augusta Gold has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Royal Gold has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Valuation & Earnings

This table compares Augusta Gold and Royal Gold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Augusta Gold	N/A	N/A	-$6.59 million	($0.09)	-13.51
Royal Gold	$719.40 million	23.83	$332.02 million	$7.28	27.90

Royal Gold has higher revenue and earnings than Augusta Gold. Augusta Gold is trading at a lower price-to-earnings ratio than Royal Gold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Augusta Gold and Royal Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Augusta Gold	N/A	-34.03%	-12.24%
Royal Gold	55.99%	14.14%	12.42%

Summary

Royal Gold beats Augusta Gold on 12 of the 14 factors compared between the two stocks.

About Augusta Gold

Augusta Gold Corp. engages in the acquisition and exploration of mineral properties in the United States. The company primarily explores for gold, silver, and other metals. It holds interests in the Bullfrog gold project consists of 734 unpatented lode mining claims and mill site claims, and 87 patented mining claims located in the Bullfrog Hills of Nye County, Nevada; and the Reward Gold Project comprises 123 unpatented Bureau of Land Management (BLM) placer and lode mining claims, and six patented placer mining claims covering approximately 2,333 acres located in Nye County, Nevada. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. is headquartered in Vancouver, Canada.

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.