Newmont (NEM) Competitors

Royal Gold (NASDAQ:RGLD) and Newmont (NYSE:NEM) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, media sentiment, dividends, profitability, earnings, community ranking, analyst recommendations, valuation and institutional ownership.

Which has stronger earnings and valuation, RGLD or NEM?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Gold	$719.40M	13.57	$332.02M	$5.04	29.45
Newmont	$11.81B	4.36	-$2.49B	-$1.52	-29.77

Do institutionals and insiders hold more shares of RGLD or NEM?

83.7% of Royal Gold shares are owned by institutional investors. Comparatively, 68.9% of Newmont shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by insiders. Comparatively, 0.1% of Newmont shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Does the media prefer RGLD or NEM?

In the previous week, Newmont had 52 more articles in the media than Royal Gold. MarketBeat recorded 68 mentions for Newmont and 16 mentions for Royal Gold. Newmont's average media sentiment score of 0.54 beat Royal Gold's score of 0.27 indicating that Newmont is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Royal Gold	7 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral
Newmont	33 Very Positive mention(s)	9 Positive mention(s)	22 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community favor RGLD or NEM?

Newmont received 165 more outperform votes than Royal Gold when rated by MarketBeat users. However, 70.05% of users gave Royal Gold an outperform vote while only 63.27% of users gave Newmont an outperform vote.

Company	Underperform	Outperform
Royal Gold	Outperform Votes 760 70.05%	Underperform Votes 325 29.95%
Newmont	Outperform Votes 925 63.27%	Underperform Votes 537 36.73%

Is RGLD or NEM more profitable?

Royal Gold has a net margin of 46.15% compared to Newmont's net margin of -7.03%. Royal Gold's return on equity of 11.46% beat Newmont's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royal Gold	46.15%	11.46%	10.44%
Newmont	-7.03%	9.80%	5.18%

Do analysts rate RGLD or NEM?

Royal Gold presently has a consensus price target of $168.86, suggesting a potential upside of 13.75%. Newmont has a consensus price target of $53.37, suggesting a potential upside of 17.95%. Given Newmont's stronger consensus rating and higher possible upside, analysts clearly believe Newmont is more favorable than Royal Gold.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	1 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.38
Newmont	1 Sell rating(s)	7 Hold rating(s)	8 Buy rating(s)	2 Strong Buy rating(s)	2.61

Which has more volatility and risk, RGLD or NEM?

Royal Gold has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Is RGLD or NEM a better dividend stock?

Royal Gold pays an annual dividend of $1.80 per share and has a dividend yield of 1.2%. Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Royal Gold pays out 35.7% of its earnings in the form of a dividend. Newmont pays out -65.8% 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. Royal Gold has increased its dividend for 24 consecutive years. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Royal Gold beats Newmont on 12 of the 22 factors compared between the two stocks.