Harmony Gold Mining Company Limited (NYSE: HMY) and Goldcorp (NYSE:GG) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
Harmony Gold Mining Company Limited pays an annual dividend of $0.07 per share and has a dividend yield of 3.7%. Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Goldcorp pays out 14.5% of its earnings in the form of a dividend. Goldcorp has raised its dividend for 4 consecutive years.
Risk & Volatility
Harmony Gold Mining Company Limited has a beta of -1.95, suggesting that its share price is 295% less volatile than the S&P 500. Comparatively, Goldcorp has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Harmony Gold Mining Company Limited and Goldcorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Harmony Gold Mining Company Limited||2||3||0||0||1.60|
Goldcorp has a consensus price target of $16.64, indicating a potential upside of 29.26%. Given Goldcorp’s stronger consensus rating and higher probable upside, analysts plainly believe Goldcorp is more favorable than Harmony Gold Mining Company Limited.
Valuation and Earnings
This table compares Harmony Gold Mining Company Limited and Goldcorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Harmony Gold Mining Company Limited||$1.47 billion||0.56||$310.57 million||N/A||N/A|
|Goldcorp||$3.52 billion||3.20||$1.33 billion||$0.55||23.40|
Goldcorp has higher revenue and earnings than Harmony Gold Mining Company Limited.
Institutional and Insider Ownership
31.8% of Harmony Gold Mining Company Limited shares are owned by institutional investors. Comparatively, 55.9% of Goldcorp 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Harmony Gold Mining Company Limited and Goldcorp’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|
Goldcorp beats Harmony Gold Mining Company Limited on 12 of the 15 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.
Goldcorp Company Profile
Goldcorp Inc. is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company is engaged in the sale of gold, silver, lead, zinc and copper. The Company’s segments include Red Lake Gold Mines Ontario Partnership (Red Lake), Goldcorp Canada Ltd./Goldcorp Inc. (Porcupine), Musselwhite, Les Mines Opinaca Ltee (Eleonore), Minera Penasquito S.A. de C.V. and Camino Rojo S.A. de C.V. (Penasquito), Desarrollos Mineros San Luis S.A. de C.V. (Los Filos), Montana Exploradora de Guatemala S.A. (Marlin), Oroplata S.A. (Cerro Negro), Corredor SpA (Project Corridor), Minera Alumbrera Limited (Alumbrera), El Morro and Pueblo Viejo Dominicana Corporation (Pueblo Viejo). The Company’s principal product is gold dore with the refined gold bullion sold primarily in the London spot market.
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