Wheaton Precious Metals (NYSE:WPM) and Gold Royalty (NYSE:GROY) Head-To-Head Survey

Wheaton Precious Metals (NYSE:WPM) and Gold Royalty (NYSE:GROY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Volatility & Risk

Wheaton Precious Metals has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wheaton Precious Metals and Gold Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wheaton Precious Metals	0	1	8	0	2.89
Gold Royalty	0	0	2	0	3.00

Wheaton Precious Metals currently has a consensus price target of $70.25, indicating a potential upside of 6.23%. Gold Royalty has a consensus price target of $3.67, indicating a potential upside of 151.14%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Royalty is more favorable than Wheaton Precious Metals.

Profitability

This table compares Wheaton Precious Metals and Gold Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wheaton Precious Metals	50.44%	8.54%	8.46%
Gold Royalty	-381.76%	-0.53%	-0.40%

Institutional & Insider Ownership

70.3% of Wheaton Precious Metals shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Wheaton Precious Metals and Gold Royalty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wheaton Precious Metals	$1.13 billion	26.48	$537.64 million	$1.30	50.87
Gold Royalty	$3.05 million	80.93	-$26.76 million	($0.16)	-9.13

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

Summary

Wheaton Precious Metals beats Gold Royalty on 9 of the 13 factors compared between the two stocks.

About Wheaton Precious Metals

Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.

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.