B2Gold (NYSE:BTG – Get Rating) and Osisko Gold Royalties (NYSE:OR – Get Rating) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Dividends
B2Gold pays an annual dividend of $0.16 per share and has a dividend yield of 4.1%. Osisko Gold Royalties pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. B2Gold pays out 64.0% of its earnings in the form of a dividend. Osisko Gold Royalties pays out -38.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Osisko Gold Royalties has raised its dividend for 1 consecutive years.
Risk & Volatility
B2Gold has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Osisko Gold Royalties has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| B2Gold | 0 | 0 | 0 | 0 | N/A |
| Osisko Gold Royalties | 0 | 1 | 0 | 0 | 2.00 |
Osisko Gold Royalties has a consensus price target of $22.00, suggesting a potential upside of 35.30%. Given Osisko Gold Royalties’ higher probable upside, analysts clearly believe Osisko Gold Royalties is more favorable than B2Gold.
Earnings and Valuation
This table compares B2Gold and Osisko Gold Royalties’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| B2Gold | $1.84 billion | 2.74 | $252.87 million | $0.25 | 15.56 |
| Osisko Gold Royalties | $167.54 million | 17.93 | -$91.35 million | ($0.42) | -38.71 |
B2Gold has higher revenue and earnings than Osisko Gold Royalties. Osisko Gold Royalties is trading at a lower price-to-earnings ratio than B2Gold, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.2% of B2Gold shares are held by institutional investors. Comparatively, 55.4% of Osisko Gold Royalties shares are held by institutional investors. 1.2% of B2Gold shares are held by company insiders. Comparatively, 0.6% of Osisko Gold Royalties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares B2Gold and Osisko Gold Royalties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| B2Gold | 14.02% | 9.94% | 8.38% |
| Osisko Gold Royalties | -42.14% | 4.54% | 3.80% |
Summary
B2Gold beats Osisko Gold Royalties on 10 of the 15 factors compared between the two stocks.
About B2Gold
B2Gold Corp. is an exploration company, which engages in the acquisition and development of mineral properties. It operates through the following segments: Fekola Mine, Otjikoto Mine, Masbate Mine, Libertad Mine, and Limon Mine. The company was founded by Mark Anthony Corra, Thomas A. Garagan, Clive Thomas Johnson and Roger Thomas Richer on November 30, 2006 and is headquartered in Vancouver, Canada.
About Osisko Gold Royalties
Osisko Gold Royalties Ltd. engages in the acquisition, mining, and exploration of precious metals, streams, and other royalties. It holds interests in the Canadian Malartic mine. The company was founded on April 29, 2014 and is headquartered in Montreal, Canada.
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