WallStSmart

DRDGOLD Limited ADR (DRD)vsFranco-Nevada Corporation (FNV)

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Smart Verdict

WallStSmart Research — data-driven comparison

DRDGOLD Limited ADR generates 337% more annual revenue ($9.13B vs $2.09B). FNV leads profitability with a 65.7% profit margin vs 35.1%. DRD appears more attractively valued with a PEG of 1.00. DRD earns a higher WallStSmart Score of 81/100 (A-).

DRD

Exceptional Buy

81

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 4/9Altman Z: 3.45

FNV

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 9.0Value: 2.7Quality: 7.8
Piotroski: 4/9Altman Z: 8.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRDUndervalued (+12.2%)

Margin of Safety

+12.2%

Fair Value

$41.34

Current Price

$21.10

$20.24 discount

UndervaluedFair: $41.34Overvalued
FNVSignificantly Overvalued (-36.5%)

Margin of Safety

-36.5%

Fair Value

$188.80

Current Price

$205.52

$16.72 premium

UndervaluedFair: $188.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRD6 strengths · Avg: 10.0/10
Return on EquityProfitability
44.8%10/10

Every $100 of equity generates 45 in profit

Profit MarginProfitability
35.1%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Revenue GrowthGrowth
32.9%10/10

Revenue surging 32.9% year-over-year

EPS GrowthGrowth
97.9%10/10

Earnings expanding 97.9% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

FNV5 strengths · Avg: 10.0/10
Profit MarginProfitability
65.7%10/10

Keeps 66 of every $100 in revenue as profit

Operating MarginProfitability
79.3%10/10

Strong operational efficiency at 79.3%

Revenue GrowthGrowth
77.7%10/10

Revenue surging 77.7% year-over-year

EPS GrowthGrowth
123.1%10/10

Earnings expanding 123.1% YoY

Altman Z-ScoreHealth
8.7110/10

Safe zone — low bankruptcy risk

Areas to Watch

DRD1 concerns · Avg: 3.0/10
Market CapQuality
$1.85B3/10

Smaller company, higher risk/reward

FNV2 concerns · Avg: 3.0/10
P/E RatioValuation
30.2x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
11.812/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DRD

The strongest argument for DRD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 35.1% and operating margin at 46.3%. Revenue growth of 32.9% demonstrates continued momentum.

Bull Case : FNV

The strongest argument for FNV centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 65.7% and operating margin at 79.3%. Revenue growth of 77.7% demonstrates continued momentum.

Bear Case : DRD

The primary concerns for DRD are Market Cap.

Bear Case : FNV

The primary concerns for FNV are P/E Ratio, PEG Ratio.

Key Dynamics to Monitor

FNV carries more volatility with a beta of 0.90 — expect wider price swings.

FNV is growing revenue faster at 77.7% — sustainability is the question.

DRD generates stronger free cash flow (627M), providing more financial flexibility.

Monitor GOLD industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRD scores higher overall (81/100 vs 68/100), backed by strong 35.1% margins and 32.9% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

DRDGOLD Limited ADR

BASIC MATERIALS · GOLD · USA

DRDGOLD Limited, a gold mining company, is engaged in the surface gold tailings retreatment business in South Africa. The company is headquartered in Johannesburg, South Africa.

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Franco-Nevada Corporation

BASIC MATERIALS · GOLD · USA

Franco-Nevada Corporation is a gold-focused royalty and flow company in the United States, Latin America, Canada, Australia, Europe and Africa, and internationally. The company is headquartered in Toronto, Canada.

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