Gold Royalty (NYSE:GROY) & Agnico Eagle Mines (NYSE:AEM) Head-To-Head Contrast

Gold Royalty (NYSE:GROY) and Agnico Eagle Mines (NYSE:AEM) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Profitability

This table compares Gold Royalty and Agnico Eagle Mines’ 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%
Agnico Eagle Mines	12.86%	8.88%	6.06%

Risk and Volatility

Gold Royalty has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Insider and Institutional Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 68.3% of Agnico Eagle Mines shares are held by institutional investors. 0.5% of Agnico Eagle Mines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Gold Royalty and Agnico Eagle Mines”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$3.05 million	77.61	-$26.76 million	($0.13)	-10.77
Agnico Eagle Mines	$6.63 billion	7.26	$1.94 billion	$2.00	47.87

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Gold Royalty and Agnico Eagle Mines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	3	0	3.00
Agnico Eagle Mines	0	1	6	0	2.86

Gold Royalty presently has a consensus target price of $3.31, suggesting a potential upside of 136.61%. Agnico Eagle Mines has a consensus target price of $92.75, suggesting a potential downside of 3.13%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Royalty is more favorable than Agnico Eagle Mines.

Summary

Agnico Eagle Mines beats Gold Royalty on 11 of the 14 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 Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.