Royal Gold (NASDAQ:RGLD) vs. Loncor Gold (OTCMKTS:LONCF) Financial Survey

Royal Gold (NASDAQ:RGLD) and Loncor Gold (OTCMKTS:LONCF) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Valuation and Earnings

This table compares Royal Gold and Loncor Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Gold	$1.03 billion	23.66	$467.27 million	$6.81	42.21
Loncor Gold	N/A	N/A	-$4.16 million	($0.03)	-33.83

Royal Gold has higher revenue and earnings than Loncor Gold. Loncor Gold is trading at a lower price-to-earnings ratio than Royal Gold, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	1	3	7	0	2.55
Loncor Gold	0	0	0	0	0.00

Royal Gold currently has a consensus price target of $251.50, suggesting a potential downside of 12.50%. Given Royal Gold’s stronger consensus rating and higher possible upside, equities analysts clearly believe Royal Gold is more favorable than Loncor Gold.

Volatility and Risk

Royal Gold has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Loncor Gold has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Gold	45.26%	11.89%	9.70%
Loncor Gold	N/A	-20.25%	-18.98%

Insider and Institutional Ownership

83.7% of Royal Gold shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by company insiders. Comparatively, 22.1% of Loncor Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Royal Gold beats Loncor Gold on 11 of the 13 factors compared between the two stocks.

About Royal Gold

Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests. The company engages in acquiring stream and royalty interests or to finance projects that are in production, development, or in the exploration stage in exchange for stream or royalty interests, which primarily consists of gold, silver, copper, nickel, zinc, lead, and other metals. Its stream and royalty interests on properties are located in the United States, Canada, Chile, the Dominican Republic, Australia, Africa, Mexico, Botswana, and internationally. Royal Gold, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.

About Loncor Gold

Loncor Gold Inc., a gold exploration company, engages in the acquisition, exploration, and development of precious metal projects in the Ngayu greenstone belt in the northeast of the Democratic Republic of the Congo and Canada. It explores for gold and platinum deposits. The company holds 84.68% interest in the Adumbi project, which consist of two mining licenses covering an area of 361 square kilometers located within the Archaean Ngayu Greenstone Belt in the Ituri and Haut Uele provinces in northeastern Congo. It also holds 100% interest in the Isiro properties that consist of 11 exploration permits covering an area of 1,884 square kilometers situated in the province of Haut Uele, northeastern Congo. In addition, Loncor Gold Inc. owns interest in North Kivu, Ngayu, Devon, Navarro, and Yindi projects. The company was formerly known as Loncor Resources Inc. and changed its name to Loncor Gold Inc. in June 2021. Loncor Gold Inc. was founded in 1993 and is headquartered in Toronto, Canada.