Critical Contrast: Osisko gold royalties (OR) vs. Kinross Gold (KGC)

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Osisko gold royalties (NYSE:OR) and Kinross Gold (NYSE:KGC) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Insider and Institutional Ownership

48.4% of Osisko gold royalties shares are held by institutional investors. Comparatively, 53.8% of Kinross Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Osisko gold royalties and Kinross Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Osisko gold royalties 0 0 3 0 3.00
Kinross Gold 1 7 3 0 2.18

Osisko gold royalties currently has a consensus price target of $20.00, indicating a potential upside of 162.47%. Kinross Gold has a consensus price target of $4.31, indicating a potential upside of 65.85%. Given Osisko gold royalties’ stronger consensus rating and higher probable upside, research analysts clearly believe Osisko gold royalties is more favorable than Kinross Gold.

Profitability

This table compares Osisko gold royalties and Kinross Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Osisko gold royalties -12.42% 0.97% 0.76%
Kinross Gold 11.67% 5.73% 3.22%

Risk & Volatility

Osisko gold royalties has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Valuation & Earnings

This table compares Osisko gold royalties and Kinross Gold’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Osisko gold royalties $164.41 million 7.24 -$32.78 million $0.14 54.43
Kinross Gold $3.30 billion 0.98 $445.40 million $0.14 18.57

Kinross Gold has higher revenue and earnings than Osisko gold royalties. Kinross Gold is trading at a lower price-to-earnings ratio than Osisko gold royalties, indicating that it is currently the more affordable of the two stocks.

Dividends

Osisko gold royalties pays an annual dividend of $0.15 per share and has a dividend yield of 2.0%. Kinross Gold does not pay a dividend. Osisko gold royalties pays out 107.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Kinross Gold beats Osisko gold royalties on 8 of the 14 factors compared between the two stocks.

Osisko gold royalties Company Profile

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and similar interests in Canada and internationally. Its assets include the 5% net smelter return (NSR) royalty on the Canadian Malartic mine; the 2.0% to 3.5% NSR royalty on the Eleonore mine; a 9.6% diamond stream on the Renard diamond mine; a 4% gold and silver stream on the Brucejack gold and silver mine; and a silver stream on the Gibraltar mine, all located in Canada. The company also has a 100% silver stream on the Mantos Blancos copper mine in Chile. It holds a portfolio of approximately 130 royalties, streams, and precious metal offtakes in North America; and owns rights to participate in future royalty/stream financings on various projects primarily in Canada. Osisko Gold Royalties Ltd is headquartered in Montreal, Canada.

Kinross Gold Company Profile

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, extraction, and processing of gold-containing ore. It also engages in the reclamation of gold mining properties; and production and sale of silver. The company's gold production and exploration activities are carried out principally in Canada, the United States, Russia, Brazil, Chile, Ghana, and Mauritania. The company was founded in 1972 and is headquartered in Toronto, Canada.

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