Gold Royalty (NYSE:GROY – Get Free Report) and Loncor Gold (OTCMKTS:LONCF – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Profitability
This table compares Gold Royalty and Loncor Gold’s 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% |
Loncor Gold | N/A | -12.66% | -10.38% |
Risk & Volatility
Gold Royalty has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Loncor Gold has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Gold Royalty | $3.05 million | 69.29 | -$26.76 million | ($0.13) | -9.62 |
Loncor Gold | N/A | N/A | -$21.27 million | ($0.14) | -2.86 |
Loncor Gold has lower revenue, but higher earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than Loncor Gold, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Gold Royalty and Loncor Gold, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Gold Royalty | 0 | 0 | 3 | 0 | 3.00 |
Loncor Gold | 0 | 0 | 0 | 0 | 0.00 |
Gold Royalty presently has a consensus target price of $3.25, suggesting a potential upside of 160.00%. Given Gold Royalty’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gold Royalty is more favorable than Loncor Gold.
Institutional & Insider Ownership
33.8% of Gold Royalty shares are owned by institutional investors. 22.1% of Loncor Gold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Gold Royalty beats Loncor Gold on 8 of the 13 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 Loncor Gold
Loncor Gold Inc., a gold exploration company, engages in the acquisition, exploration, and development of precious metal projects in the Ngayu greenstone belt in the northeast of the Democratic Republic of the Congo and Canada. It explores for gold and platinum deposits. The company holds 84.68% interest in the Adumbi project, which consist of two mining licenses covering an area of 361 square kilometers located within the Archaean Ngayu Greenstone Belt in the Ituri and Haut Uele provinces in northeastern Congo. It also holds 100% interest in the Isiro properties that consist of 11 exploration permits covering an area of 1,884 square kilometers situated in the province of Haut Uele, northeastern Congo. In addition, Loncor Gold Inc. owns interest in North Kivu, Ngayu, Devon, Navarro, and Yindi projects. The company was formerly known as Loncor Resources Inc. and changed its name to Loncor Gold Inc. in June 2021. Loncor Gold Inc. was founded in 1993 and is headquartered in Toronto, Canada.
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