Core stocks vs royalties on an industry stock?

[scorpioncapital]

Which is usually better to own ? A core stock or a low capex royalty servicing an industry?

 

An example that I'm grappling with is say oil producers that would have huge upside if oil price rises due to inflation or stagflation or oil process automation or other tangential ways to service the industry? Does low capex royalties Trump inflation protection of hard assets ?

 

[LC]

Royalities usually command the highest premium, but a royalty on nothing is still nothing. I would also caution on the assumption that hard assets are particularly 'inflation-protected'.