Critical Comparison: AngloGold Ashanti (AU) versus Its Rivals

AngloGold Ashanti (NYSE: AU) is one of 61 public companies in the “Gold Mining” industry, but how does it compare to its competitors? We will compare AngloGold Ashanti to related companies based on the strength of its analyst recommendations, risk, profitability, earnings, valuation, dividends and institutional ownership.

Dividends

AngloGold Ashanti pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. AngloGold Ashanti pays out -22.5% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 1.0% and pay out 67.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for AngloGold Ashanti and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AngloGold Ashanti 1 2 4 0 2.43
AngloGold Ashanti Competitors 471 1833 2141 50 2.39

AngloGold Ashanti currently has a consensus price target of $11.50, indicating a potential upside of 25.82%. As a group, “Gold Mining” companies have a potential upside of 54.00%. Given AngloGold Ashanti’s competitors higher possible upside, analysts plainly believe AngloGold Ashanti has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

31.4% of AngloGold Ashanti shares are owned by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are owned by institutional investors. 7.9% of shares of all “Gold Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

AngloGold Ashanti has a beta of -1.4, suggesting that its stock price is 240% less volatile than the S&P 500. Comparatively, AngloGold Ashanti’s competitors have a beta of -0.13, suggesting that their average stock price is 113% less volatile than the S&P 500.

Earnings & Valuation

This table compares AngloGold Ashanti and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AngloGold Ashanti $4.25 billion $63.00 million -22.85
AngloGold Ashanti Competitors $2.41 billion -$32.21 million 163.55

AngloGold Ashanti has higher revenue and earnings than its competitors. AngloGold Ashanti is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares AngloGold Ashanti and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AngloGold Ashanti N/A N/A N/A
AngloGold Ashanti Competitors -2,998.75% -8.66% -3.99%

Summary

AngloGold Ashanti beats its competitors on 8 of the 14 factors compared.

About AngloGold Ashanti

AngloGold Ashanti Limited (AngloGold Ashanti) is a gold mining company. The Company’s business activities span the spectrum of the mining value chain. Its main product is gold. Its portfolio includes over 17 mines in approximately nine countries. It also produces silver, uranium and sulfuric acid as by-products. The Company operates through four segments: South Africa, Continental Africa, Australasia and Americas. Its South African operations comprise over four mines and surface production facilities, which include the Vaal River operations, including Kopanang and Moab Khotsong; The West Wits operations, including Mponeng and TauTona, and surface operations. It has operations in Continental Africa in locations, including Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania. The Australasia segment includes the operations in Australia. It consists of Sunrise Dam and Tropicana. The Americas segment includes the operations in Argentina, Brazil and the United States.

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