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

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

Institutional and Insider Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 19.4% of Timberline Resources shares are held by institutional investors. 17.2% of Timberline Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$14.46 million	65.55	-$26.76 million	($0.04)	-107.75
Timberline Resources	N/A	N/A	-$2.18 million	N/A	N/A

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	1	6	1	3.00
Timberline Resources	0	0	0	0	0.00

Gold Royalty currently has a consensus target price of $5.68, suggesting a potential upside of 31.75%. Given Gold Royalty’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Gold Royalty is more favorable than Timberline Resources.

Volatility and Risk

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

Summary

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

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.

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.