Scully Royalty (NYSE:SRL – Get Rating) and Royal Gold (NASDAQ:RGLD – Get Rating) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
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|
Earnings and Valuation
This table compares Scully Royalty and Royal Gold’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Scully Royalty||$48.99 million||2.27||-$18.00 million||N/A||N/A|
|Royal Gold||$603.21 million||13.44||$238.98 million||$3.61||34.23|
Scully Royalty pays an annual dividend of $0.59 per share and has a dividend yield of 7.9%. 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.
Risk & Volatility
Scully Royalty has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Royal Gold has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
Institutional and Insider Ownership
40.0% of Scully Royalty shares are owned by institutional investors. Comparatively, 78.1% of Royal Gold shares are owned by institutional investors. 1.9% of Scully Royalty shares are owned by company insiders. Comparatively, 0.4% of Royal Gold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for Scully Royalty and Royal Gold, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Royal Gold has a consensus price target of $141.63, suggesting a potential upside of 14.60%. Given Royal Gold’s higher probable upside, analysts plainly believe Royal Gold is more favorable than Scully Royalty.
Royal Gold beats Scully Royalty on 10 of the 14 factors compared between the two stocks.
About Scully Royalty
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
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.
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