Head to Head Survey: Namib Minerals (NASDAQ:NAMM) vs. Gold Royalty (NYSE:GROY)

Namib Minerals (NASDAQ:NAMM) and Gold Royalty (NYSE:GROY) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations for Namib Minerals and Gold Royalty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Namib Minerals	1	0	0	0	1.00
Gold Royalty	0	1	6	0	2.86

Gold Royalty has a consensus target price of $4.75, indicating a potential upside of 14.18%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Royalty is more favorable than Namib Minerals.

Valuation & Earnings

This table compares Namib Minerals and Gold Royalty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Namib Minerals	N/A	N/A	-$20.75 million	($1.27)	-1.04
Gold Royalty	$14.46 million	49.03	-$26.76 million	($0.04)	-104.00

Namib Minerals has higher earnings, but lower revenue than Gold Royalty. Gold Royalty is trading at a lower price-to-earnings ratio than Namib Minerals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Namib Minerals has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Namib Minerals and Gold Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Namib Minerals	N/A	N/A	-56.66%
Gold Royalty	-252.16%	0.46%	0.35%

Institutional & Insider Ownership

59.5% of Namib Minerals shares are held by institutional investors. Comparatively, 33.8% of Gold Royalty shares are held by institutional investors. 30.5% of Namib Minerals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Gold Royalty beats Namib Minerals on 8 of the 13 factors compared between the two stocks.

About Namib Minerals

Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.

About Gold Royalty

Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.