Head-To-Head Analysis: Osisko Development (NYSE:ODV) vs. Royal Gold (NASDAQ:RGLD)

Royal Gold (NASDAQ:RGLD) and Osisko Development (NYSE:ODV) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Royal Gold and Osisko Development, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	1	2	8	0	2.64
Osisko Development	1	0	2	1	2.75

Royal Gold presently has a consensus price target of $234.60, indicating a potential downside of 2.78%. Given Royal Gold’s higher possible upside, equities analysts clearly believe Royal Gold is more favorable than Osisko Development.

Earnings & Valuation

This table compares Royal Gold and Osisko Development”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Gold	$719.40 million	28.31	$332.02 million	$7.28	33.15
Osisko Development	$11.27 million	80.70	-$63.01 million	($1.11)	-3.21

Royal Gold has higher revenue and earnings than Osisko Development. Osisko Development is trading at a lower price-to-earnings ratio than Royal Gold, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Royal Gold has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Profitability

This table compares Royal Gold and Osisko Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Gold	55.99%	14.14%	12.42%
Osisko Development	N/A	-21.34%	-12.57%

Insider and Institutional Ownership

83.7% of Royal Gold shares are owned by institutional investors. Comparatively, 15.2% of Osisko Development shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by company insiders. Comparatively, 0.9% of Osisko Development shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Royal Gold beats Osisko Development on 10 of the 15 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 Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.