Sandstorm Gold (NYSE:SAND) and Gold Royalty (NYSE:GROY) Financial Survey

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

Volatility and Risk

Sandstorm Gold has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sandstorm Gold	20.46%	2.44%	1.86%
Gold Royalty	-252.16%	0.46%	0.35%

Valuation & Earnings

This table compares Sandstorm Gold 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
Sandstorm Gold	$106.58 million	17.06	$41.72 million	$0.12	51.13
Gold Royalty	$3.05 million	74.83	-$26.76 million	($0.13)	-10.38

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandstorm Gold	0	2	2	0	2.50
Gold Royalty	0	0	3	0	3.00

Sandstorm Gold currently has a consensus price target of $8.50, indicating a potential upside of 38.55%. Gold Royalty has a consensus price target of $3.25, indicating a potential upside of 140.74%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Royalty is more favorable than Sandstorm Gold.

Institutional and Insider Ownership

52.0% of Sandstorm Gold shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. 1.5% of Sandstorm Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Sandstorm Gold beats Gold Royalty on 10 of the 14 factors compared between the two stocks.

About Sandstorm Gold

Sandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements from companies that have advanced stage operating mines. It offers upfront payments for companies to acquire a stream and receives the right to purchase a percentage of a mine's production for the life of the mine. The company has a portfolio of 243 streams and royalties. It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 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.