Royal Gold (NASDAQ:RGLD – Get Rating) and Scully Royalty (NYSE:SRL – Get Rating) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Insider & Institutional Ownership
78.1% of Royal Gold shares are held by institutional investors. Comparatively, 40.0% of Scully Royalty shares are held by institutional investors. 0.4% of Royal Gold shares are held by insiders. Comparatively, 1.9% of Scully Royalty 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.
This is a breakdown of current recommendations and price targets for Royal Gold and Scully Royalty, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Royal Gold pays an annual dividend of $1.50 per share and has a dividend yield of 1.2%. Scully Royalty pays an annual dividend of $0.59 per share and has a dividend yield of 8.0%. Royal Gold pays out 41.6% of its earnings in the form of a dividend. Royal Gold has raised its dividend for 21 consecutive years and Scully Royalty has raised its dividend for 1 consecutive years.
Risk and Volatility
Royal Gold has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Scully Royalty has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Earnings and Valuation
This table compares Royal Gold and Scully Royalty’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Royal Gold||$611.24 million||13.29||$238.98 million||$3.61||34.30|
|Scully Royalty||$48.99 million||2.24||-$18.00 million||N/A||N/A|
Royal Gold has higher revenue and earnings than Scully Royalty.
This table compares Royal Gold and Scully Royalty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Royal Gold beats Scully Royalty on 10 of the 14 factors compared between the two stocks.
About Royal Gold
Royal Gold, Inc. engages in the acquisition and management of precious metal streams, royalties, and similar interests. It operates through the Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests segments. The Acquisition and Management of Stream Interests segment focuses on metal streams, which are purchase agreements that provide, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced, at a price determined for the life of the transaction. The Acquisition and Management of Royalty Interests segment refers to the non-operating interests in mining projects that provide the right to revenue or metals produced from the project. The company was founded by Stanley Dempsey on January 5, 1981 and is headquartered in Denver, CO.
About Scully Royalty
Scully Royalty Ltd. is a merchant bank company, which engages in the provision of financial services and facilitates trading of corporations and institutions. It operates through the Industrial and Merchant Banking segments. The Industrial segment includes projects in resources and services. The Merchant Banking segment consists of the European merchant banking business. The company was founded on June 28, 1951 and is headquartered in Shanghai, China.
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