Reviewing Royalty Management (NASDAQ:RMCO) and Cohen & Steers (NYSE:CNS)

Royalty Management (NASDAQ:RMCO) and Cohen & Steers (NYSE:CNS) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Royalty Management and Cohen & Steers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royalty Management	$810,000.00	54.19	-$110,000.00	($0.01)	-298.00
Cohen & Steers	$517.42 million	6.99	$151.26 million	$3.19	22.22

Cohen & Steers has higher revenue and earnings than Royalty Management. Royalty Management is trading at a lower price-to-earnings ratio than Cohen & Steers, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

67.2% of Royalty Management shares are owned by institutional investors. Comparatively, 51.5% of Cohen & Steers shares are owned by institutional investors. 57.1% of Royalty Management shares are owned by insiders. Comparatively, 47.6% of Cohen & Steers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Royalty Management and Cohen & Steers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royalty Management	1	1	1	0	2.00
Cohen & Steers	1	1	1	0	2.00

Cohen & Steers has a consensus target price of $72.50, indicating a potential upside of 2.30%. Given Cohen & Steers’ higher probable upside, analysts plainly believe Cohen & Steers is more favorable than Royalty Management.

Profitability

This table compares Royalty Management and Cohen & Steers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royalty Management	-9.62%	-2.12%	-1.61%
Cohen & Steers	29.73%	29.92%	19.74%

Dividends

Royalty Management pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Cohen & Steers pays an annual dividend of $2.48 per share and has a dividend yield of 3.5%. Royalty Management pays out -100.0% of its earnings in the form of a dividend. Cohen & Steers pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cohen & Steers has increased its dividend for 16 consecutive years. Cohen & Steers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Royalty Management has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, Cohen & Steers has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Cohen & Steers beats Royalty Management on 11 of the 15 factors compared between the two stocks.

About Royalty Management

Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.

About Cohen & Steers

Cohen & Steers, Inc. is a holding company, which operates as an investment manager specializing in liquid real assets, which include real estate securities, listed infrastructure, commodities, natural resource equities, preferred securities, and other income solutions. It manages investment vehicles, such as institutional accounts, open-end funds and closed-end funds. The company was founded by Martin Cohen and Robert Hamilton Steers in 1986 and is headquartered in New York, NY.