Contrasting Minco Capital (OTCMKTS:MGHCF) and Royal Gold (NASDAQ:RGLD)

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

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares Minco Capital and Royal Gold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minco Capital	N/A	N/A	-$290,000.00	$0.01	4.07
Royal Gold	$719.40 million	16.43	$332.02 million	$6.82	26.33

Royal Gold has higher revenue and earnings than Minco Capital. Minco Capital 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 Minco Capital and Royal Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minco Capital	N/A	10.65%	10.32%
Royal Gold	56.24%	13.30%	12.32%

Volatility and Risk

Minco Capital has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Royal Gold has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Minco Capital and Royal Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minco Capital	0	0	0	0	0.00
Royal Gold	0	3	5	0	2.63

Royal Gold has a consensus price target of $198.63, indicating a potential upside of 10.61%. Given Royal Gold’s stronger consensus rating and higher possible upside, analysts plainly believe Royal Gold is more favorable than Minco Capital.

Summary

Royal Gold beats Minco Capital on 13 of the 13 factors compared between the two stocks.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and 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.