Gold Royalty Corp. (GROY) vs New Found Gold Corp. (NFGC)

Gold Royalty Corp. and New Found Gold Corp. are both Gold companies. Gold Royalty Corp. and New Found Gold Corp. are of similar size ($736.7M and $670.2M). New Found Gold Corp. has negative trailing earnings, so its P/E is not meaningful; Gold Royalty Corp. trades at 790×. Gold Royalty Corp. has the higher net margin (6.65% vs 0.00%) and the higher return on invested capital (0.52% vs −14.3%). Across the 14 metrics below, Gold Royalty Corp. leads on 12 and New Found Gold Corp. on 2.

Valuation

Metric GROY NFGC Gold median
P/E 790.00 n/m 23.34
P/S 32.33 n/m 5.02
P/B 1.01 1.53 3.53
Price to free cash flow n/m n/m 16.73
EV/EBITDA 63.25 n/m 8.34
EV/Sales 31.71 n/m 4.92
Earnings yield 0.13% (9.14%) 1.44%
Free cash flow yield (8.14%) (10.65%) 0.75%

Profitability

Metric GROY NFGC Gold median
Gross margin 71.17% 0.00% 50.00%
Operating margin 26.32% 0.00% 26.32%
Net margin 6.65% 0.00% 12.30%
Free cash flow margin 47.92% 0.00% 0.00%
Return on equity 0.23% (19.43%) 6.36%
Return on assets 0.19% (14.24%) 0.00%
Return on invested capital 0.52% (14.31%) 0.52%

Growth

Metric GROY NFGC Gold median
Revenue growth (TTM) 82.28% — 68.15%
EPS growth (last fiscal year) 0.00% 21.05% —
Revenue growth, 5-year CAGR 141.00% — 16.12%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GROY NFGC Gold median
Debt to equity 0.00 0.12 0.10
Current ratio 4.80 5.36 3.08
Net debt to EBITDA (3.24) 1.06 0.00

Dividend

Metric GROY NFGC Gold median
Dividend yield 1.49% — 1.49%
Payout ratio 0.00 0.00 0.00

Size

Metric GROY NFGC Gold median
Market cap 736.74m 670.23m 1.96b

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