Financial Comparison: Royal Gold (NASDAQ:RGLD) vs. Dakota Territory Resource (OTCMKTS:DTRC)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Royal Gold and Dakota Territory Resource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	0	3	5	0	2.63
Dakota Territory Resource	0	0	0	0	0.00

Royal Gold presently has a consensus target price of $198.63, suggesting a potential upside of 4.91%. Given Royal Gold’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Royal Gold is more favorable than Dakota Territory Resource.

Profitability

This table compares Royal Gold and Dakota Territory Resource’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%
Dakota Territory Resource	N/A	N/A	N/A

Institutional & Insider Ownership

83.7% of Royal Gold shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by company insiders. Comparatively, 59.3% of Dakota Territory Resource shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Gold	$799.48 million	15.59	$332.02 million	$6.82	27.76
Dakota Territory Resource	N/A	N/A	N/A	N/A	N/A

Royal Gold has higher revenue and earnings than Dakota Territory Resource.

Summary

Royal Gold beats Dakota Territory Resource on 8 of the 9 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 Dakota Territory Resource

Dakota Territory Resource Corp., an exploration stage company, engages in the acquisition, exploration, and development of gold properties in the United States. It holds 100% interests in eight mineral properties, including the Blind Gold, City Creek, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, and Homestake Paleoplacer properties covering an area of approximately 19,500 acres located in the Black Hills of South Dakota. The company was formerly known as Mustang Geothermal Corp and changed its name to Dakota Territory Resource Corp. in September 2012. Dakota Territory Resource Corp. was incorporated in 2002 and is headquartered in Lead, South Dakota.