Head-To-Head Survey: Gold Royalty (NYSE:GROY) versus Pan American Silver (NYSE:PAAS)

Gold Royalty (NYSE:GROY) and Pan American Silver (NYSE:PAAS) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

33.8% of Gold Royalty shares are held by institutional investors. Comparatively, 55.4% of Pan American Silver shares are held by institutional investors. 12.9% of Pan American Silver shares are held by company 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Gold Royalty and Pan American Silver, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	3	0	3.00
Pan American Silver	0	1	4	0	2.80

Gold Royalty currently has a consensus price target of $3.25, suggesting a potential upside of 170.83%. Pan American Silver has a consensus price target of $25.42, suggesting a potential upside of 18.47%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe Gold Royalty is more favorable than Pan American Silver.

Profitability

This table compares Gold Royalty and Pan American Silver’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%
Pan American Silver	-2.37%	3.07%	2.01%

Valuation & Earnings

This table compares Gold Royalty and Pan American Silver”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$3.05 million	66.52	-$26.76 million	($0.13)	-9.23
Pan American Silver	$2.67 billion	2.91	-$103.70 million	($0.17)	-126.21

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

Volatility & Risk

Gold Royalty has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Summary

Pan American Silver beats Gold Royalty on 8 of the 14 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 Pan American Silver

Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.