Critical Contrast: First Colombia Gold (OTCMKTS:FCGD) versus Gold Royalty (NYSE:GROY)

First Colombia Gold (OTCMKTS:FCGD) and Gold Royalty (NYSE:GROY) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Colombia Gold	N/A	N/A	N/A
Gold Royalty	-252.16%	0.46%	0.35%

Analyst Ratings

This is a summary of recent ratings and price targets for First Colombia Gold and Gold Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Colombia Gold	0	0	0	0	0.00
Gold Royalty	0	0	3	0	3.00

Gold Royalty has a consensus target price of $3.25, suggesting a potential upside of 151.94%. Given Gold Royalty’s stronger consensus rating and higher possible upside, analysts clearly believe Gold Royalty is more favorable than First Colombia Gold.

Insider and Institutional Ownership

33.8% of Gold Royalty shares are held by institutional investors. 0.0% of First Colombia Gold shares are held by company 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.

Risk & Volatility

First Colombia Gold has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Colombia Gold and Gold Royalty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Colombia Gold	N/A	N/A	N/A	N/A	N/A
Gold Royalty	$3.05 million	71.51	-$26.76 million	($0.13)	-9.92

First Colombia Gold has higher earnings, but lower revenue than Gold Royalty.

Summary

Gold Royalty beats First Colombia Gold on 8 of the 10 factors compared between the two stocks.

About First Colombia Gold

First Colombia Gold Corp. engages in the exploration and production of oil and gas properties. The company operates through Energy and Mining divisions. It holds interests in 96 oil wells with a gross acreage of 4,302 acres in the counties of Cumberland, Monroe, Overton, and Clinton. The company is also involved in the precious minerals exploration business. It owns 2 unpatented mining claims in the Skip Silver prospect covering an area of approximately 40 acres in central Montana. The company was formerly known as Amazon Goldsands Ltd. and changed its name to First Colombia Gold Corp. in November 2010. First Colombia Gold Corp. was founded in 1997 and is based in Nashville, Tennessee.

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.