Royal Gold vs Platinum Which Performs Better?

When considering their investment options, many individuals may find themselves torn between investing in Royal Gold and Platinum stocks. Both precious metals have unique characteristics that can offer investors a hedge against market volatility and inflation. Royal Gold stocks provide exposure to the precious metal market through royalty agreements with mining companies, while Platinum stocks offer potential for price appreciation due to its scarcity and industrial uses. Understanding the differences and potential benefits of investing in Royal Gold versus Platinum stocks can help investors make informed decisions about their investment portfolios.

Royal Gold or Platinum?

When comparing Royal Gold and Platinum, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Royal Gold and Platinum.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Royal Gold has a dividend yield of 1.11%, while Platinum has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Royal Gold reports a 5-year dividend growth of 8.45% year and a payout ratio of 42.37%. On the other hand, Platinum reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Royal Gold P/E ratio at 39.18 and Platinum's P/E ratio at 22.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Royal Gold P/B ratio is 3.17 while Platinum's P/B ratio is 0.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Royal Gold has seen a 5-year revenue growth of 0.43%, while Platinum's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Royal Gold's ROE at 8.28% and Platinum's ROE at 3.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $141.20 for Royal Gold and ฿2.20 for Platinum. Over the past year, Royal Gold's prices ranged from $100.55 to $155.10, with a yearly change of 54.25%. Platinum's prices fluctuated between ฿2.00 and ฿3.20, with a yearly change of 60.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.