Comparing Gold Royalty (NYSE:GROY) & Namib Minerals (NASDAQ:NAMM)

Namib Minerals (NASDAQ:NAMM) and Gold Royalty (NYSE:GROY) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Namib Minerals	1	0	0	0	1.00
Gold Royalty	0	0	6	1	3.14

Gold Royalty has a consensus target price of $4.75, indicating a potential upside of 11.90%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Royalty is more favorable than Namib Minerals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Namib Minerals	N/A	N/A	-56.66%
Gold Royalty	-252.16%	0.46%	0.35%

Valuation & Earnings

This table compares Namib Minerals 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
Namib Minerals	N/A	N/A	-$20.75 million	($1.27)	-1.05
Gold Royalty	$14.46 million	50.03	-$26.76 million	($0.04)	-106.13

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

Insider and Institutional Ownership

59.5% of Namib Minerals shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. 30.5% of Namib Minerals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Namib Minerals has a beta of -0.16, indicating that its stock price is 116% less volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Summary

Gold Royalty beats Namib Minerals on 9 of the 14 factors compared between the two stocks.

About Namib Minerals

Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.

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.