Scully Royalty (NYSE:SRL) & Royal Gold (NASDAQ:RGLD) Critical Contrast

Scully Royalty (NYSE:SRL – Get Rating) and Royal Gold (NASDAQ:RGLD – Get Rating) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$48.99 million	2.24	-$18.00 million	N/A	N/A
Royal Gold	$611.24 million	13.29	$238.98 million	$3.61	34.30

Royal Gold has higher revenue and earnings than Scully Royalty.

Institutional & Insider Ownership

40.0% of Scully Royalty shares are held by institutional investors. Comparatively, 78.1% of Royal Gold shares are held by institutional investors. 1.9% of Scully Royalty shares are held by company insiders. Comparatively, 0.4% of Royal Gold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
Royal Gold	38.80%	8.18%	6.76%

Dividends

Scully Royalty pays an annual dividend of $0.59 per share and has a dividend yield of 8.0%. Royal Gold pays an annual dividend of $1.50 per share and has a dividend yield of 1.2%. Royal Gold pays out 41.6% of its earnings in the form of a dividend. Scully Royalty has increased its dividend for 1 consecutive years and Royal Gold has increased its dividend for 21 consecutive years.

Volatility & Risk

Scully Royalty has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Royal Gold has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Scully Royalty and Royal Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	0	0	0	0	N/A
Royal Gold	0	5	4	0	2.44

Royal Gold has a consensus target price of $141.63, indicating a potential upside of 14.37%. Given Royal Gold’s higher possible upside, analysts clearly believe Royal Gold is more favorable than Scully Royalty.

Summary

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

About Scully Royalty

(Get Rating)

Scully Royalty Ltd. is a merchant bank company, which engages in the provision of financial services and facilitates trading of corporations and institutions. It operates through the Industrial and Merchant Banking segments. The Industrial segment includes projects in resources and services. The Merchant Banking segment consists of the European merchant banking business. The company was founded on June 28, 1951 and is headquartered in Shanghai, China.

About Royal Gold

(Get Rating)

Royal Gold, Inc. engages in the acquisition and management of precious metal streams, royalties, and similar interests. It operates through the Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests segments. The Acquisition and Management of Stream Interests segment focuses on metal streams, which are purchase agreements that provide, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced, at a price determined for the life of the transaction. The Acquisition and Management of Royalty Interests segment refers to the non-operating interests in mining projects that provide the right to revenue or metals produced from the project. The company was founded by Stanley Dempsey on January 5, 1981 and is headquartered in Denver, CO.