Harmony Gold Mining Company Limited (NYSE: HMY) and Gold Fields Limited (NYSE:GFI) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Profitability
This table compares Harmony Gold Mining Company Limited and Gold Fields Limited’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harmony Gold Mining Company Limited | N/A | N/A | N/A |
| Gold Fields Limited | N/A | N/A | N/A |
Valuation & Earnings
This table compares Harmony Gold Mining Company Limited and Gold Fields Limited’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Harmony Gold Mining Company Limited | $1.43 billion | 0.58 | $308.16 million | N/A | N/A |
| Gold Fields Limited | $2.79 billion | 1.27 | $1.18 billion | N/A | N/A |
Gold Fields Limited has higher revenue and earnings than Harmony Gold Mining Company Limited.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Harmony Gold Mining Company Limited and Gold Fields Limited, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harmony Gold Mining Company Limited | 2 | 3 | 0 | 0 | 1.60 |
| Gold Fields Limited | 2 | 1 | 2 | 0 | 2.00 |
Gold Fields Limited has a consensus target price of $3.41, indicating a potential downside of 21.06%. Given Gold Fields Limited’s stronger consensus rating and higher possible upside, analysts plainly believe Gold Fields Limited is more favorable than Harmony Gold Mining Company Limited.
Insider & Institutional Ownership
31.8% of Harmony Gold Mining Company Limited shares are owned by institutional investors. Comparatively, 35.0% of Gold Fields Limited shares are owned by institutional investors. 16.0% of Harmony Gold Mining Company Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
Harmony Gold Mining Company Limited pays an annual dividend of $0.07 per share and has a dividend yield of 3.7%. Gold Fields Limited pays an annual dividend of $0.07 per share and has a dividend yield of 1.6%.
Volatility and Risk
Harmony Gold Mining Company Limited has a beta of -1.95, indicating that its share price is 295% less volatile than the S&P 500. Comparatively, Gold Fields Limited has a beta of -1.03, indicating that its share price is 203% less volatile than the S&P 500.
Summary
Gold Fields Limited beats Harmony Gold Mining Company Limited on 8 of the 10 factors compared between the two stocks.
Harmony Gold Mining Company Limited Company Profile
Harmony Gold Mining Company Limited, through its subsidiaries, is engaged in gold mining and related activities, including exploration, extraction and processing. The Company’s segments include South Africa Underground, Surface, and International. The South Africa Underground segment includes Kusasalethu, Doornkop, Phakisa, Tshepong, Masimong, Target 1, Bambanani, Joel, Unisel and Target 3. The Surface segment comprises the Company’s other surface operations. The Company’s International segment comprises Hidden Valley Project. The Company has operations in South Africa and Papua New Guinea (PNG). The Company’s principal product is the Gold bullion. The Company’s exploration projects include Golpu project and Kili Teke prospect. The Company has approximately nine underground mines, one open pit operation and several surface sources in South Africa. The Company’s subsidiaries include Lydenburg Exploration Limited, Tswelopele Beneficiation Operation (TBO) and Harmony Copper Limited.
Gold Fields Limited Company Profile
Gold Fields Limited (Gold Fields) is a gold mining company. The Company is a producer of gold and a holder of gold reserves. The Company is involved in underground and surface gold and copper mining and related activities, including exploration, development, extraction, processing and smelting. It has approximately eight producing mines located in South Africa, Ghana, Australia and Peru. It operates through four segments: South Africa, Ghana, Australia and Peru. Its South African operation is South Deep. Gold Fields also owns the St. Ives mine, the Agnew mine and the Yilgarn South Assets in Australia, and has an interest in each of the Tarkwa gold mine and the Damang gold mine in Ghana. Gold Fields also owns an economic interest in the Cerro Corona mine. In Peru, Gold Fields also produces copper. In addition, Gold Fields has gold and other precious metal exploration activities and interests in Africa, Eurasia, Australasia and the Americas.
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