B2Gold Corp (NYSE:BTG) and Royal Gold (RGLD) Financial Contrast

B2Gold Corp (NYSE: BTG) and Royal Gold (NASDAQ:RGLD) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
B2Gold Corp N/A N/A N/A
Royal Gold 23.03% 4.19% 3.09%

Valuation & Earnings

This table compares B2Gold Corp and Royal Gold’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
B2Gold Corp $684.82 million 3.68 $290.86 million N/A N/A
Royal Gold $440.81 million 12.93 $305.58 million $1.56 55.92

Royal Gold has higher revenue, but lower earnings than B2Gold Corp.

Dividends

Royal Gold pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. B2Gold Corp does not pay a dividend. Royal Gold pays out 61.5% of its earnings in the form of a dividend. Royal Gold has raised its dividend for 12 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for B2Gold Corp and Royal Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B2Gold Corp 0 0 5 0 3.00
Royal Gold 0 5 7 0 2.58

B2Gold Corp presently has a consensus price target of $4.75, indicating a potential upside of 84.11%. Royal Gold has a consensus price target of $91.95, indicating a potential upside of 5.41%. Given B2Gold Corp’s stronger consensus rating and higher possible upside, analysts plainly believe B2Gold Corp is more favorable than Royal Gold.

Institutional and Insider Ownership

70.6% of Royal Gold shares are held by institutional investors. 1.4% of Royal Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Royal Gold beats B2Gold Corp on 11 of the 15 factors compared between the two stocks.

B2Gold Corp Company Profile

B2Gold Corp. (B2Gold) is a Canada-based gold producer with approximately four operating mines and one mine under construction. The Company has a portfolio of other evaluation and exploration projects in various countries, including Mali, Colombia, Burkina Faso, Finland, Chile and Nicaragua. Its material mineral properties consist of three mines and one mine under construction: Otjikoto mine, an open pit gold mine located approximately 300 kilometers north of Windhoek, the capital of Namibia (Otjikoto Mine); Masbate mine, an open pit gold mine, located near the northern tip of the island of Masbate, over 360 kilometers south-east of Manila (Masbate Gold Project); La Libertad mine, an open pit gold mine located over 110 kilometers due east of Managua and 32 kilometers northeast of Juigalpa, Nicaragua (La Libertad Mine), and Fekola gold project, an open pit gold mine under construction located approximately 40 kilometers south of the city of Kenieba, Mali (Fekola Project).

Royal Gold Company Profile

Royal Gold, Inc., together with its subsidiaries, is engaged in acquiring and managing precious metal streams, royalties and similar interests. The Company operates through two segments: Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests. Its assets are located in Canada, Chile, Dominican Republic, Mexico, the United States, Africa, Australia and Other. As of June 30, 2016, the Company owned stream interests on four producing properties and three development-stage properties. It has investments in stream interests relating to Pueblo Viejo, Andacollo, Wassa and Prestea, and Rainy River. As of June 30, 2016, the Company owned royalty interests on 34 producing properties, 21 development-stage properties and 131 exploration-stage properties, of which it considered 50 to be evaluation-stage projects.

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