Gold Royalty (NYSE:GROY) vs. Skeena Resources (NYSE:SKE) Financial Review

Gold Royalty (NYSE:GROY) and Skeena Resources (NYSE:SKE) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Gold Royalty and Skeena Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	3	0	3.00
Skeena Resources	0	0	0	0	0.00

Gold Royalty presently has a consensus target price of $3.25, suggesting a potential upside of 156.92%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Royalty is more favorable than Skeena Resources.

Institutional and Insider Ownership

33.8% of Gold Royalty shares are owned by institutional investors. Comparatively, 45.2% of Skeena Resources shares are owned by institutional investors. 2.0% of Skeena Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Gold Royalty has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gold Royalty and Skeena Resources”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	70.12	-$26.76 million	($0.13)	-9.73
Skeena Resources	N/A	N/A	-$80.73 million	($1.37)	-6.77

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

Profitability

This table compares Gold Royalty and Skeena Resources’ 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%
Skeena Resources	N/A	-115.76%	-67.22%

Summary

Gold Royalty beats Skeena Resources on 8 of the 12 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 Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.