Gold Fields Limited (NYSE: GFI) and Paramount Gold Nevada Corp (NYSE:PZG) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Institutional & Insider Ownership

34.0% of Gold Fields Limited shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Gold Fields Limited and Paramount Gold Nevada Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gold Fields Limited $2.79 billion 1.30 $1.18 billion N/A N/A
Paramount Gold Nevada Corp N/A N/A -$4.75 million N/A N/A

Gold Fields Limited has higher revenue and earnings than Paramount Gold Nevada Corp.

Analyst Recommendations

This is a breakdown of current ratings for Gold Fields Limited and Paramount Gold Nevada Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Fields Limited 2 1 2 0 2.00
Paramount Gold Nevada Corp 0 0 1 0 3.00

Gold Fields Limited currently has a consensus target price of $3.41, indicating a potential downside of 22.50%. Paramount Gold Nevada Corp has a consensus target price of $2.00, indicating a potential upside of 30.72%. Given Paramount Gold Nevada Corp’s stronger consensus rating and higher probable upside, analysts clearly believe Paramount Gold Nevada Corp is more favorable than Gold Fields Limited.

Dividends

Gold Fields Limited pays an annual dividend of $0.07 per share and has a dividend yield of 1.6%. Paramount Gold Nevada Corp does not pay a dividend.

Profitability

This table compares Gold Fields Limited and Paramount Gold Nevada Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gold Fields Limited N/A N/A N/A
Paramount Gold Nevada Corp -599.29% -11.32% -10.95%

Summary

Gold Fields Limited beats Paramount Gold Nevada Corp on 8 of the 10 factors compared between the two stocks.

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.

Paramount Gold Nevada Corp Company Profile

Paramount Gold Nevada Corp. is an exploration-stage mining company. The Company is engaged in the business of acquiring, exploring and developing precious metal projects in the United States. Its principal Nevada interest, the Sleeper Gold Project, is located in Humboldt County, Nevada. Its project located in Oregon, known as the Grassy Mountain Project, is situated in Malheur County, Oregon. As of June 30, 2016, the Company owned additional mining claims in the State of Nevada, including the Mill Creek property, which had 36 unpatented lode mining claims in Lander County, and the Spring Valley property, which had 38 lode mining claims in Pershing County. Its subsidiaries, New Sleeper Gold LLC and Sleeper Mining Company, LLC, operate its mining interests in Nevada. Its subsidiaries, Calico Resources Corp. and Calico Resources USA Corp., hold its interest in the Grassy Mountain Project in Oregon. As of June 30, 2016, the Company had not generated any revenues from operations.

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