Reviewing Royal Gold (NASDAQ:RGLD) and ThyssenKrupp (OTCMKTS:TKAMY)

ThyssenKrupp (OTCMKTS:TKAMY) and Royal Gold (NASDAQ:RGLD) are both large-cap materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Dividends

ThyssenKrupp pays an annual dividend of $0.11 per share and has a dividend yield of 0.6%. Royal Gold pays an annual dividend of $1.90 per share and has a dividend yield of 0.7%. ThyssenKrupp pays out 20.4% of its earnings in the form of a dividend. Royal Gold pays out 20.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Royal Gold has increased its dividend for 25 consecutive years. Royal Gold is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares ThyssenKrupp and Royal Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThyssenKrupp	$36.31 billion	0.30	$514.57 million	$0.54	31.87
Royal Gold	$1.03 billion	20.88	$467.27 million	$9.16	27.73

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

Risk and Volatility

ThyssenKrupp has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Royal Gold has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Insider & Institutional Ownership

83.7% of Royal Gold shares are held by institutional investors. 0.3% of Royal Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for ThyssenKrupp and Royal Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThyssenKrupp	2	2	3	1	2.38
Royal Gold	1	4	8	0	2.54

Royal Gold has a consensus price target of $287.82, suggesting a potential upside of 13.32%. Given Royal Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Royal Gold is more favorable than ThyssenKrupp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ThyssenKrupp	0.89%	5.94%	2.17%
Royal Gold	47.74%	12.06%	9.41%

Summary

Royal Gold beats ThyssenKrupp on 12 of the 18 factors compared between the two stocks.

About ThyssenKrupp

thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

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.