Novagold Resources Inc. (NG) vs OR Royalties Inc. (OR)

Novagold Resources Inc. and OR Royalties Inc. are both Gold companies. OR Royalties Inc. is the larger, with a market value of $6.7B against $3.2B — 2.1× the size. Novagold Resources Inc. has negative trailing earnings, so its P/E is not meaningful; OR Royalties Inc. trades at 23.7×. OR Royalties Inc. grew revenue faster over the last twelve months: 69.5% against 18.2%. OR Royalties Inc. has the higher net margin (78.0% vs 0.00%) and the higher return on invested capital (10.8% vs −19.1%). Across the 16 metrics below, OR Royalties Inc. leads on 14 and Novagold Resources Inc. on 2.

Valuation

Metric NG OR Gold median
P/E n/m 23.71 23.34
P/S n/m 18.53 5.02
P/B 7.43 4.53 3.53
Price to free cash flow n/m 47.20 16.73
EV/EBITDA n/m 21.12 8.34
EV/Sales n/m 18.91 4.92
Earnings yield (2.41%) 4.22% 1.44%
Free cash flow yield (0.57%) 2.12% 0.75%

Profitability

Metric NG OR Gold median
Gross margin 0.00% 84.85% 50.00%
Operating margin 0.00% 77.18% 26.32%
Net margin 0.00% 78.03% 12.30%
Free cash flow margin 0.00% 83.58% 0.00%
Return on equity (24.63%) 20.41% 6.36%
Return on assets (15.56%) 17.17% 0.00%
Return on invested capital (19.10%) 10.78% 0.52%

Growth

Metric NG OR Gold median
Revenue growth (TTM) 18.16% 69.51% 68.15%
EPS growth (last fiscal year) (78.57%) 1,111.11% —
Revenue growth, 5-year CAGR — 11.71% 16.12%
Net income growth, 5-year CAGR 0.00% 74.88% 0.00%

Health

Metric NG OR Gold median
Debt to equity 0.41 0.14 0.10
Current ratio 112.82 2.28 3.08
Net debt to EBITDA (1.08) (0.61) 0.00

Dividend

Metric NG OR Gold median
Dividend yield — 1.10% 1.49%
Payout ratio 0.00 0.51 0.00

Size

Metric NG OR Gold median
Market cap 3.15b 6.66b 1.96b

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