Newmont Corporation (NEM) vs Royal Gold, Inc. (RGLD)

Newmont Corporation and Royal Gold, Inc. are both Gold companies. Newmont Corporation is the larger, with a market value of $127.5B against $21.4B — 5.9× the size. Newmont Corporation trades at the lower P/E: 15.3× against 27.5×. Royal Gold, Inc. grew revenue faster over the last twelve months: 93.5% against 25.2%. Royal Gold, Inc. has the higher net margin (47.8% vs 33.4%) and the lower return on invested capital (7.57% vs 25.9%). Both pay a dividend; Newmont Corporation yields more (5.15% vs 1.38%). Across the 23 metrics below, Newmont Corporation leads on 15 and Royal Gold, Inc. on 8.

Valuation

Metric NEM RGLD Gold median
P/E 15.29 27.53 23.34
P/S 5.02 13.84 5.02
P/B 3.65 2.80 3.53
Price to free cash flow 12.97 16.35 16.73
EV/EBITDA 8.04 17.33 8.34
EV/Sales 4.92 14.01 4.92
Earnings yield 6.54% 3.63% 1.44%
Free cash flow yield 7.71% 6.12% 0.75%

Profitability

Metric NEM RGLD Gold median
Gross margin 68.94% 86.90% 50.00%
Operating margin 51.25% 61.42% 26.32%
Net margin 33.36% 47.76% 12.30%
Free cash flow margin 38.69% 67.51% 0.00%
Return on equity 25.40% 13.49% 6.36%
Return on assets 15.24% 11.35% 0.00%
Return on invested capital 25.90% 7.57% 0.52%

Growth

Metric NEM RGLD Gold median
Revenue growth (TTM) 25.18% 93.51% 68.15%
EPS growth (last fiscal year) 118.84% 32.74% —
Revenue growth, 5-year CAGR 14.54% 10.84% 16.12%
Net income growth, 5-year CAGR 20.15% 9.08% 0.00%

Health

Metric NEM RGLD Gold median
Debt to equity 0.15 0.05 0.10
Current ratio 2.55 2.92 3.08
Net debt to EBITDA (0.21) 0.81 0.00

Dividend

Metric NEM RGLD Gold median
Dividend yield 5.15% 1.38% 1.49%
Payout ratio 1.80 0.42 0.00

Size

Metric NEM RGLD Gold median
Market cap 127.49b 21.44b 1.96b

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