B2Gold (NYSE:BTG) versus Gold Royalty (NYSE:GROY) Head-To-Head Contrast

B2Gold (NYSE:BTG) and Gold Royalty (NYSE:GROY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Volatility and Risk

B2Gold has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

61.4% of B2Gold shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. 1.2% of B2Gold 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.

Analyst Ratings

This is a breakdown of recent ratings for B2Gold and Gold Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B2Gold	1	4	3	1	2.44
Gold Royalty	0	0	3	0	3.00

B2Gold currently has a consensus price target of $4.21, indicating a potential upside of 24.63%. Gold Royalty has a consensus price target of $3.31, indicating a potential upside of 81.01%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Royalty is more favorable than B2Gold.

Valuation & Earnings

This table compares B2Gold and Gold Royalty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B2Gold	$1.97 billion	2.26	$10.10 million	($0.47)	-7.19
Gold Royalty	$10.35 million	30.15	-$26.76 million	($0.02)	-91.50

B2Gold has higher revenue and earnings than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than B2Gold, indicating that it is currently the more affordable of the two stocks.

Dividends

B2Gold pays an annual dividend of $0.08 per share and has a dividend yield of 2.4%. Gold Royalty pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. B2Gold pays out -17.0% of its earnings in the form of a dividend. Gold Royalty pays out -50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares B2Gold and Gold Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B2Gold	-33.12%	5.65%	4.06%
Gold Royalty	-252.16%	0.46%	0.35%

Summary

B2Gold beats Gold Royalty on 10 of the 16 factors compared between the two stocks.

About B2Gold

B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali and Finland. The company was incorporated in 2006 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.