Gold Royalty Corp. (GROY) vs TRX Gold Corporation (TRX)

Gold Royalty Corp. and TRX Gold Corporation are both Gold companies. Gold Royalty Corp. is the larger, with a market value of $736.7M against $423.5M — 1.7× the size. TRX Gold Corporation has negative trailing earnings, so its P/E is not meaningful; Gold Royalty Corp. trades at 790×. TRX Gold Corporation grew revenue faster over the last twelve months: 142.1% against 82.3%. Gold Royalty Corp. has the higher net margin (6.65% vs −16.7%) and the lower return on invested capital (0.52% vs 35.3%). Across the 17 metrics below, Gold Royalty Corp. leads on 10 and TRX Gold Corporation on 7.

Valuation

Metric GROY TRX Gold median
P/E 790.00 n/m 23.34
P/S 32.33 3.70 5.02
P/B 1.01 3.53 3.53
Price to free cash flow n/m 134.06 16.73
EV/EBITDA 63.25 6.52 8.34
EV/Sales 31.71 3.50 4.92
Earnings yield 0.13% (4.65%) 1.44%
Free cash flow yield (8.14%) 0.75% 0.75%

Profitability

Metric GROY TRX Gold median
Gross margin 71.17% 58.24% 50.00%
Operating margin 26.32% 47.99% 26.32%
Net margin 6.65% (16.67%) 12.30%
Free cash flow margin 47.92% 2.76% 0.00%
Return on equity 0.23% (20.26%) 6.36%
Return on assets 0.19% (13.45%) 0.00%
Return on invested capital 0.52% 35.29% 0.52%

Growth

Metric GROY TRX Gold median
Revenue growth (TTM) 82.28% 142.07% 68.15%
EPS growth (last fiscal year) 0.00% 0.00% —
Revenue growth, 5-year CAGR 141.00% — 16.12%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GROY TRX Gold median
Debt to equity 0.00 0.03 0.10
Current ratio 4.80 2.20 3.08
Net debt to EBITDA (3.24) (0.31) 0.00

Dividend

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

Size

Metric GROY TRX Gold median
Market cap 736.74m 423.53m 1.96b

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