Pan American Silver (NYSE:PAAS – Get Free Report) and Gold Royalty (NYSE:GROY – Get Free Report) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Pan American Silver and Gold Royalty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pan American Silver | -2.37% | 3.07% | 2.01% |
| Gold Royalty | -252.16% | 0.46% | 0.35% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Pan American Silver and Gold Royalty, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pan American Silver | 0 | 1 | 3 | 0 | 2.75 |
| Gold Royalty | 0 | 0 | 3 | 0 | 3.00 |
Valuation & Earnings
This table compares Pan American Silver 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 | |
| Pan American Silver | $2.67 billion | 2.92 | -$103.70 million | ($0.17) | -126.32 |
| Gold Royalty | $3.05 million | 67.63 | -$26.76 million | ($0.13) | -9.38 |
Gold Royalty has lower revenue, but higher earnings than Pan American Silver. Pan American Silver is trading at a lower price-to-earnings ratio than Gold Royalty, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Pan American Silver has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Institutional and Insider Ownership
55.4% of Pan American Silver shares are owned by institutional investors. Comparatively, 33.8% of Gold Royalty shares are owned by institutional investors. 12.9% of Pan American Silver 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
Pan American Silver beats Gold Royalty on 7 of the 13 factors compared between the two stocks.
About Pan American Silver
Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 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.
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