Head-To-Head Review: Pelangio Exploration (OTCMKTS:PGXPF) vs. Royal Gold (NASDAQ:RGLD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Gold	55.99%	14.14%	12.42%
Pelangio Exploration	N/A	-778.64%	-87.35%

Volatility & Risk

Royal Gold has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Royal Gold and Pelangio Exploration, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Gold	1	1	8	1	2.82
Pelangio Exploration	0	0	0	0	0.00

Royal Gold currently has a consensus price target of $234.60, suggesting a potential downside of 18.49%. Given Royal Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Royal Gold is more favorable than Pelangio Exploration.

Earnings and Valuation

This table compares Royal Gold and Pelangio Exploration”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Gold	$719.40 million	33.77	$332.02 million	$7.28	39.54
Pelangio Exploration	N/A	N/A	-$550,000.00	N/A	N/A

Royal Gold has higher revenue and earnings than Pelangio Exploration.

Summary

Royal Gold beats Pelangio Exploration on 12 of the 12 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 Pelangio Exploration

Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.