Gold Royalty (NYSE:GROY) and Timberline Resources (OTCMKTS:TLRS) Critical Survey

Timberline Resources (OTCMKTS:TLRS) and Gold Royalty (NYSE:GROY) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Valuation & Earnings

This table compares Timberline Resources and Gold Royalty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Timberline Resources	N/A	N/A	-$2.18 million	N/A	N/A
Gold Royalty	$14.46 million	67.59	-$26.76 million	($0.04)	-123.75

Timberline Resources has higher earnings, but lower revenue than Gold Royalty.

Analyst Ratings

This is a summary of recent ratings and target prices for Timberline Resources and Gold Royalty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Timberline Resources	0	0	0	0	0.00
Gold Royalty	0	0	7	1	3.13

Gold Royalty has a consensus price target of $5.11, indicating a potential upside of 3.17%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Royalty is more favorable than Timberline Resources.

Profitability

This table compares Timberline Resources and Gold Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Timberline Resources	N/A	-9.49%	-9.18%
Gold Royalty	-252.16%	0.46%	0.35%

Volatility & Risk

Timberline Resources has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

19.4% of Timberline Resources shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. 17.2% of Timberline Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Gold Royalty beats Timberline Resources on 9 of the 12 factors compared between the two stocks.

About Timberline Resources

Timberline Resources Corporation explores, evaluates, acquires, and develops mineral properties in the United States. It primarily explores for gold, silver, and copper deposits. The company's flagship property is the Eureka project, which covers an area of approximately 18,464 acres located in the southern part of the Eureka mining district, Nevada. It also holds interest in the Paiute project covering an area of approximately 1,346 acres located in the Battle Mountain mining district, Lander and Humboldt Counties, Nevada; Seven Troughs project covers 3900 acres in Lovelock in Pershing County, Nevada; and acquires Wolfpack Gold properties. The company was formerly known as Silver Crystal Mines, Inc. and changed its name to Timberline Resources Corporation in February 2004. Timberline Resources Corporation was incorporated in 1968 and is based in Hayden, Idaho.

About Gold Royalty

Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.