Royal Gold (RGLD) vs. Mesabi Trust (MSB) Head-To-Head Comparison

Royal Gold (NASDAQ:RGLD) and Mesabi Trust (NYSE:MSB) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Insider & Institutional Ownership

75.4% of Royal Gold shares are owned by institutional investors. Comparatively, 18.8% of Mesabi Trust shares are owned by institutional investors. 1.0% of Royal Gold shares are owned by insiders. Comparatively, 0.5% of Mesabi Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Royal Gold and Mesabi Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Gold -28.39% 4.66% 3.64%
Mesabi Trust 97.13% 231.66% 156.65%

Valuation and Earnings

This table compares Royal Gold and Mesabi Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Royal Gold $459.04 million 10.53 -$113.13 million $1.76 41.91
Mesabi Trust $34.56 million 9.96 $33.49 million N/A N/A

Mesabi Trust has lower revenue, but higher earnings than Royal Gold.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Royal Gold and Mesabi Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Gold 0 6 6 0 2.50
Mesabi Trust 0 0 0 0 N/A

Royal Gold currently has a consensus target price of $95.15, suggesting a potential upside of 29.00%. Given Royal Gold’s higher possible upside, equities analysts plainly believe Royal Gold is more favorable than Mesabi Trust.

Dividends

Royal Gold pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Mesabi Trust pays an annual dividend of $3.76 per share and has a dividend yield of 14.3%. Royal Gold pays out 56.8% of its earnings in the form of a dividend. Royal Gold has raised its dividend for 13 consecutive years and Mesabi Trust has raised its dividend for 4 consecutive years.

Risk & Volatility

Royal Gold has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Mesabi Trust has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Royal Gold Company Profile

Royal Gold, Inc. engages in the acquisition and management of metal streams, royalties, and similar interests. It operates through the Acquisition and Management of Stream Interests and Acquisition and Management of Royalty Interests segments. The Acquisition and Management of Stream Interests segment involves in the purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals. The Acquisition and Management of Royalty Interests segment focuses on the non-operating interests in mining projects that provide the revenue or metals produced from the project. The company was founded on January 5, 1981 and is headquartered in Denver, CO.

Mesabi Trust Company Profile

Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. The company was founded in 1919 and is based in New York, New York.

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