Mesabi Trust (NYSE:MSB) and Royal Gold (NASDAQ:RGLD) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Volatility & Risk
Mesabi Trust has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Royal Gold has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.
Earnings and Valuation
This table compares Mesabi Trust and Royal Gold’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mesabi Trust||$34.56 million||10.10||$33.49 million||N/A||N/A|
|Royal Gold||$459.04 million||10.84||-$113.13 million||$1.76||43.16|
Mesabi Trust has higher earnings, but lower revenue than Royal Gold.
Institutional & Insider Ownership
18.8% of Mesabi Trust shares are held by institutional investors. Comparatively, 75.4% of Royal Gold shares are held by institutional investors. 0.5% of Mesabi Trust shares are held by company insiders. Comparatively, 1.0% of Royal Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Mesabi Trust and Royal Gold, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Royal Gold has a consensus price target of $95.15, suggesting a potential upside of 25.26%. Given Royal Gold’s higher probable upside, analysts plainly believe Royal Gold is more favorable than Mesabi Trust.
Mesabi Trust pays an annual dividend of $3.76 per share and has a dividend yield of 14.1%. Royal Gold pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Royal Gold pays out 56.8% of its earnings in the form of a dividend. Mesabi Trust has increased its dividend for 4 consecutive years and Royal Gold has increased its dividend for 13 consecutive years.
This table compares Mesabi Trust and Royal Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
About Mesabi Trust
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.
About Royal Gold
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.
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