Financial Comparison: Platinum Group Metals (NYSE:PLG) versus Gold Royalty (NYSE:GROY)

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

Profitability

This table compares Gold Royalty and Platinum Group Metals’ 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%
Platinum Group Metals	N/A	-11.73%	-11.24%

Volatility and Risk

Gold Royalty has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Institutional & Insider Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are held by institutional investors. 0.0% of Platinum Group Metals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Gold Royalty and Platinum Group Metals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$7.76 million	27.98	-$26.76 million	($0.13)	-9.88
Platinum Group Metals	N/A	N/A	-$5.66 million	($0.07)	-22.86

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

Analyst Ratings

This is a breakdown of recent recommendations for Gold Royalty and Platinum Group Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	2	0	3.00
Platinum Group Metals	0	0	0	0	0.00

Gold Royalty presently has a consensus price target of $3.58, suggesting a potential upside of 178.86%. Given Gold Royalty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gold Royalty is more favorable than Platinum Group Metals.

Summary

Gold Royalty beats Platinum Group Metals 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 Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.