Contrasting Royal Gold (RGLD) & Its Peers

Royal Gold (NASDAQ:RGLD) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Royal Gold to related companies based on the strength of its valuation, profitability, analyst recommendations, earnings, dividends, risk and institutional ownership.

Dividends

Royal Gold pays an annual dividend of $1.90 per share and has a dividend yield of 0.8%. Royal Gold pays out 20.7% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 11.0% and pay out 10.8% of their earnings in the form of a dividend. Royal Gold has increased its dividend for 25 consecutive years. Royal Gold lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Royal Gold and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Royal Gold	$1.03 billion	$467.27 million	24.97
Royal Gold Competitors	$4.65 billion	$279.69 million	-46.29

Royal Gold’s peers have higher revenue, but lower earnings than Royal Gold. Royal Gold is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Royal Gold and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Gold	47.74%	12.06%	9.41%
Royal Gold Competitors	-1,168,050,136,845,918,000.00%	-53.09%	-2.11%

Risk & Volatility

Royal Gold has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Royal Gold’s peers have a beta of 1.03, meaning that their average stock price is 3% more volatile than the S&P 500.

Insider & Institutional Ownership

83.7% of Royal Gold shares are held by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are held by institutional investors. 0.3% of Royal Gold shares are held by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Royal Gold and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	0	3	8	0	2.73
Royal Gold Competitors	6397	22575	32271	1793	2.47

Royal Gold presently has a consensus price target of $309.56, suggesting a potential upside of 35.31%. As a group, “Metals & Mining” companies have a potential upside of 35.71%. Given Royal Gold’s peers higher probable upside, analysts plainly believe Royal Gold has less favorable growth aspects than its peers.

Summary

Royal Gold beats its peers on 8 of the 15 factors compared.

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.