Head-To-Head Review: Gold Royalty (NYSE:GROY) and Agnico Eagle Mines (NYSE:AEM)

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

Volatility & Risk

Agnico Eagle Mines has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares Agnico Eagle Mines and Gold Royalty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agnico Eagle Mines	$6.63 billion	7.46	$1.94 billion	$2.00	49.21
Gold Royalty	$3.05 million	78.71	-$26.76 million	($0.13)	-10.92

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

Insider & Institutional Ownership

68.3% of Agnico Eagle Mines shares are held by institutional investors. Comparatively, 33.8% of Gold Royalty shares are held by institutional investors. 0.5% of Agnico Eagle Mines 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.

Profitability

This table compares Agnico Eagle Mines and Gold Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agnico Eagle Mines	12.86%	8.88%	6.06%
Gold Royalty	-252.16%	0.46%	0.35%

Analyst Ratings

This is a summary of recent recommendations and price targets for Agnico Eagle Mines and Gold Royalty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agnico Eagle Mines	0	1	6	0	2.86
Gold Royalty	0	0	3	0	3.00

Agnico Eagle Mines presently has a consensus price target of $92.75, suggesting a potential downside of 5.76%. Gold Royalty has a consensus price target of $3.31, suggesting a potential upside of 133.27%. Given Gold Royalty’s stronger consensus rating and higher possible upside, analysts plainly believe Gold Royalty is more favorable than Agnico Eagle Mines.

Summary

Agnico Eagle Mines beats Gold Royalty on 11 of the 14 factors compared between the two stocks.

About Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, 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.