Gold Royalty (NYSE:GROY – Get Free Report) and Alamos Gold (NYSE:AGI – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Profitability
This table compares Gold Royalty and Alamos Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gold Royalty | -381.76% | -0.53% | -0.40% |
| Alamos Gold | 17.73% | 8.52% | 6.26% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Gold Royalty and Alamos Gold, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gold Royalty | 0 | 0 | 2 | 0 | 3.00 |
| Alamos Gold | 0 | 1 | 4 | 0 | 2.80 |
Dividends
Gold Royalty pays an annual dividend of $0.01 per share and has a dividend yield of 0.7%. Alamos Gold pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Gold Royalty pays out -5.9% of its earnings in the form of a dividend. Alamos Gold pays out 19.2% 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. Gold Royalty is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Gold Royalty and Alamos Gold”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gold Royalty | $6.50 million | 38.36 | -$26.76 million | ($0.17) | -8.68 |
| Alamos Gold | $1.12 billion | 7.40 | $210.00 million | $0.52 | 39.97 |
Alamos Gold has higher revenue and earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Gold Royalty has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Institutional & Insider Ownership
33.8% of Gold Royalty shares are owned by institutional investors. Comparatively, 64.3% of Alamos Gold shares are owned by institutional investors. 0.5% of Alamos Gold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Alamos Gold beats Gold Royalty on 11 of the 16 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 Alamos Gold
Alamos Gold Inc. engages in the acquisition, exploration, development, and extraction of precious metals in Canada and Mexico. The company primarily explores for gold deposits. It holds 100% interest in the Young-Davidson mine and Island Gold mine located in the Ontario, Canada; Mulatos mine located in the Sonora, Mexico; and Lynn Lake project situated in the Manitoba, Canada. The company also holds interest in the Quartz Mountain project located in the Oregon United states. Alamos Gold Inc. was founded in 2003 and is based in Toronto, Canada.
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