Contrasting Osisko gold royalties (OR) and Kirkland Lake Gold (KL)

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

Earnings & Valuation

This table compares Kirkland Lake Gold and Osisko gold royalties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kirkland Lake Gold $747.49 million 5.76 $132.42 million $0.71 28.73
Osisko gold royalties $164.41 million 9.01 -$32.78 million $0.14 67.71

Kirkland Lake Gold has higher revenue and earnings than Osisko gold royalties. Kirkland Lake 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Kirkland Lake Gold 22.27% 16.86% 12.71%
Osisko gold royalties -13.84% 1.44% 1.14%

Analyst Ratings

This is a breakdown of current ratings and target prices for Kirkland Lake Gold and Osisko gold royalties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kirkland Lake Gold 0 0 3 0 3.00
Osisko gold royalties 0 0 4 0 3.00

Osisko gold royalties has a consensus target price of $20.00, indicating a potential upside of 110.97%. Given Osisko gold royalties’ higher probable upside, analysts clearly believe Osisko gold royalties is more favorable than Kirkland Lake Gold.

Dividends

Kirkland Lake Gold pays an annual dividend of $0.06 per share and has a dividend yield of 0.3%. Osisko gold royalties pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. Kirkland Lake Gold pays out 8.5% of its earnings in the form of a dividend. Osisko gold royalties pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

42.3% of Kirkland Lake Gold shares are held by institutional investors. Comparatively, 49.4% of Osisko gold royalties shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Kirkland Lake Gold beats Osisko gold royalties on 7 of the 13 factors compared between the two stocks.

About Kirkland Lake Gold

Kirkland Lake Gold Ltd. engages in the exploration and development of gold properties. The company owns and operates four underground gold mines, including the Macassa mine, the Holt mine, and the Taylor mine in Ontario, Canada; and the Fosterville Mine in Victoria, Australia, as well as three milling facilities in Canada and Australia. The company was formerly known as Newmarket Gold Inc. and changed its name to Kirkland Lake Gold Ltd. in December 2016. Kirkland Lake Gold Ltd. was founded in 1983 and is headquartered in Toronto, Canada.

About Osisko gold royalties

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.

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