Royal Gold, Inc. (RGLD) vs Wheaton Precious Metals Corp. (WPM)

Royal Gold, Inc. and Wheaton Precious Metals Corp. are both Gold companies. Wheaton Precious Metals Corp. is the larger, with a market value of $65.4B against $21.4B — 3.1× the size. Royal Gold, Inc. trades at the lower P/E: 27.5× against 31.6×. Royal Gold, Inc. grew revenue faster over the last twelve months: 93.5% against 90.8%. Wheaton Precious Metals Corp. has the higher net margin (64.7% vs 47.8%) and the higher return on invested capital (12.5% vs 7.57%). Both pay a dividend; Royal Gold, Inc. yields more (1.38% vs 1.30%). Across the 22 metrics below, Royal Gold, Inc. leads on 13 and Wheaton Precious Metals Corp. on 9.

Valuation

Metric RGLD WPM Gold median
P/E 27.53 31.62 23.34
P/S 13.84 20.46 5.02
P/B 2.80 6.70 3.53
Price to free cash flow 16.35 n/m 16.73
EV/EBITDA 17.33 25.14 8.34
EV/Sales 14.01 21.05 4.92
Earnings yield 3.63% 3.16% 1.44%
Free cash flow yield 6.12% (4.49%) 0.75%

Profitability

Metric RGLD WPM Gold median
Gross margin 86.90% 75.25% 50.00%
Operating margin 61.42% 72.62% 26.32%
Net margin 47.76% 64.66% 12.30%
Free cash flow margin 67.51% (91.92%) 0.00%
Return on equity 13.49% 23.55% 6.36%
Return on assets 11.35% 20.36% 0.00%
Return on invested capital 7.57% 12.45% 0.52%

Growth

Metric RGLD WPM Gold median
Revenue growth (TTM) 93.51% 90.79% 68.15%
EPS growth (last fiscal year) 32.74% 176.92% —
Revenue growth, 5-year CAGR 10.84% 16.12% 16.12%
Net income growth, 5-year CAGR 9.08% 23.72% 0.00%

Health

Metric RGLD WPM Gold median
Debt to equity 0.05 0.20 0.10
Current ratio 2.92 0.47 3.08
Net debt to EBITDA 0.81 (0.61) 0.00

Dividend

Metric RGLD WPM Gold median
Dividend yield 1.38% 1.30% 1.49%
Payout ratio 0.42 0.44 0.00

Size

Metric RGLD WPM Gold median
Market cap 21.44b 65.40b 1.96b

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