Elemental Royalty (NASDAQ:ELE – Get Free Report) and Vale (NYSE:VALE – Get Free Report) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
21.9% of Vale shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Elemental Royalty and Vale’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elemental Royalty | 4.01% | 0.53% | 0.46% |
| Vale | 5.11% | 19.87% | 8.58% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elemental Royalty | $43.64 million | 31.69 | $1.77 million | $0.08 | 238.75 |
| Vale | $38.40 billion | 1.59 | $2.35 billion | $0.49 | 27.41 |
Vale has higher revenue and earnings than Elemental Royalty. Vale is trading at a lower price-to-earnings ratio than Elemental Royalty, indicating that it is currently the more affordable of the two stocks.
Dividends
Elemental Royalty pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Vale pays an annual dividend of $0.44 per share and has a dividend yield of 3.3%. Elemental Royalty pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vale pays out 89.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vale is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Elemental Royalty and Vale, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elemental Royalty | 0 | 2 | 1 | 0 | 2.33 |
| Vale | 1 | 12 | 2 | 1 | 2.19 |
Elemental Royalty currently has a consensus price target of $31.00, indicating a potential upside of 62.30%. Vale has a consensus price target of $16.04, indicating a potential upside of 19.40%. Given Elemental Royalty’s stronger consensus rating and higher possible upside, research analysts plainly believe Elemental Royalty is more favorable than Vale.
Summary
Vale beats Elemental Royalty on 11 of the 15 factors compared between the two stocks.
About Elemental Royalty
Elemental Royalty Corporation engages in the acquisition and generation of precious metal royalties. The company holds royalties in gold, silver, and copper projects. It operates in North America; South America; Australia; Africa; and internationally. The company was formerly known as Elemental Altus Royalties Corp. and changed its name to Elemental Royalty Corporation in November 2025. The company is headquartered in Vancouver, Canada.
About Vale
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services. The Energy Transition Materials segment produces and extracts nickel used to produce stainless steel, electric vehicles, and metal alloys; and its by-products, such as gold, silver, cobalt, precious metals, platinum, and others, as well as copper used in the construction sector to produce pipes and electrical wires. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.
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