Head to Head Comparison: Coeur Mining (NYSE:CDE) and Gold Royalty (NYSE:GROY)

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

Institutional and Insider Ownership

63.0% of Coeur Mining shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. 1.6% of Coeur Mining shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Coeur Mining and Gold Royalty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coeur Mining	$1.01 billion	2.47	-$103.61 million	($0.03)	-208.67
Gold Royalty	$7.76 million	27.22	-$26.76 million	($0.13)	-9.62

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

Risk and Volatility

Coeur Mining has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Coeur Mining and Gold Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coeur Mining	-0.44%	1.78%	0.86%
Gold Royalty	-252.16%	0.46%	0.35%

Analyst Recommendations

This is a summary of recent ratings and target prices for Coeur Mining and Gold Royalty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coeur Mining	0	1	4	1	3.00
Gold Royalty	0	0	3	0	3.00

Coeur Mining currently has a consensus target price of $7.81, indicating a potential upside of 24.80%. Gold Royalty has a consensus target price of $3.25, indicating a potential upside of 160.00%. Given Gold Royalty’s higher probable upside, analysts clearly believe Gold Royalty is more favorable than Coeur Mining.

Summary

Coeur Mining beats Gold Royalty on 10 of the 14 factors compared between the two stocks.

About Coeur Mining

Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company primarily explores for gold, silver, zinc, and lead properties. It markets and sells its concentrates to third-party customers, smelters, under off-take agreements. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was incorporated in 1928 and is headquartered in Chicago, Illinois.

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.