Gold Royalty (NYSE:GROY) & Harmony Gold Mining (NYSE:HMY) Financial Survey

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

Risk & Volatility

Harmony Gold Mining has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Insider and Institutional Ownership

31.8% of Harmony Gold Mining shares are held by institutional investors. Comparatively, 33.8% of Gold Royalty shares are held by institutional investors. 16.0% of Harmony Gold Mining shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Harmony Gold Mining and Gold Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Gold Mining	1	2	0	0	1.67
Gold Royalty	0	0	2	0	3.00

Harmony Gold Mining currently has a consensus target price of $8.20, suggesting a potential downside of 21.61%. Gold Royalty has a consensus target price of $3.58, suggesting a potential upside of 152.35%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Royalty is more favorable than Harmony Gold Mining.

Valuation and Earnings

This table compares Harmony Gold Mining and Gold Royalty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Gold Mining	$3.31 billion	2.01	$459.40 million	N/A	N/A
Gold Royalty	$7.76 million	30.92	-$26.76 million	($0.13)	-10.92

Harmony Gold Mining has higher revenue and earnings than Gold Royalty.

Dividends

Harmony Gold Mining pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. Gold Royalty pays an annual dividend of $0.01 per share and has a dividend yield of 0.7%. Gold Royalty pays out -7.7% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Harmony Gold Mining	N/A	N/A	N/A
Gold Royalty	-381.76%	-0.53%	-0.40%

Summary

Harmony Gold Mining beats Gold Royalty on 8 of the 14 factors compared between the two stocks.

About Harmony Gold Mining

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.

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.