Contrasting Perpetua Resources (NASDAQ:PPTA) and Gold Royalty (NYSE:GROY)

Gold Royalty (NYSE:GROY) and Perpetua Resources (NASDAQ:PPTA) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Gold Royalty and Perpetua Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$6.50 million	35.76	-$26.76 million	($0.17)	-8.09
Perpetua Resources	N/A	N/A	-$18.77 million	($0.27)	-34.65

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

Profitability

This table compares Gold Royalty and Perpetua Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Royalty	-381.76%	-0.53%	-0.40%
Perpetua Resources	N/A	-18.43%	-16.08%

Insider and Institutional Ownership

33.8% of Gold Royalty shares are owned by institutional investors. Comparatively, 70.1% of Perpetua Resources shares are owned by institutional investors. 1.9% of Perpetua Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Gold Royalty has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Perpetua Resources has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Gold Royalty and Perpetua Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	2	0	3.00
Perpetua Resources	0	0	3	0	3.00

Gold Royalty presently has a consensus target price of $3.67, indicating a potential upside of 166.67%. Perpetua Resources has a consensus target price of $11.63, indicating a potential upside of 24.27%. Given Gold Royalty’s higher possible upside, equities analysts clearly believe Gold Royalty is more favorable than Perpetua Resources.

Summary

Gold Royalty beats Perpetua Resources on 7 of the 12 factors compared between the two stocks.

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.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.