Gold Fields Limited (NYSE: GFI) and Goldcorp (NYSE:GG) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Insider and Institutional Ownership

34.0% of Gold Fields Limited shares are held by institutional investors. Comparatively, 54.0% of Goldcorp shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Gold Fields Limited has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500. Comparatively, Goldcorp has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.

Dividends

Gold Fields Limited pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. 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 increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Gold Fields Limited and Goldcorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Fields Limited 2 1 1 0 1.75
Goldcorp 0 10 6 0 2.38

Gold Fields Limited presently has a consensus target price of $3.41, suggesting a potential downside of 19.76%. Goldcorp has a consensus target price of $16.64, suggesting a potential upside of 30.28%. Given Goldcorp’s stronger consensus rating and higher probable upside, analysts clearly believe Goldcorp is more favorable than Gold Fields Limited.

Valuation and Earnings

This table compares Gold Fields Limited and Goldcorp’s top-line 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 1.25 $1.18 billion N/A N/A
Goldcorp $3.52 billion 3.14 $1.33 billion $0.55 23.22

Goldcorp has higher revenue and earnings than Gold Fields Limited.

Profitability

This table compares Gold Fields Limited and Goldcorp’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
Goldcorp 13.22% 3.43% 2.15%

Summary

Goldcorp beats Gold Fields Limited on 12 of the 15 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.

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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