Comparing DRDGOLD (NYSE:DRD) and Minco Capital (OTCMKTS:MGHCF)

DRDGOLD (NYSE:DRD) and Minco Capital (OTCMKTS:MGHCF) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Risk and Volatility

DRDGOLD has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Minco Capital has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Earnings & Valuation

This table compares DRDGOLD and Minco Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DRDGOLD	$7.88 billion	0.37	$123.57 million	N/A	N/A
Minco Capital	N/A	N/A	-$290,000.00	$0.02	2.23

DRDGOLD has higher revenue and earnings than Minco Capital.

Institutional & Insider Ownership

14.7% of DRDGOLD shares are held by institutional investors. 1.0% of DRDGOLD shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares DRDGOLD and Minco Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DRDGOLD	N/A	N/A	N/A
Minco Capital	N/A	28.01%	27.23%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for DRDGOLD and Minco Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DRDGOLD	0	1	2	0	2.67
Minco Capital	0	0	0	0	0.00

DRDGOLD currently has a consensus price target of $36.25, suggesting a potential upside of 8.63%. Given DRDGOLD’s stronger consensus rating and higher probable upside, equities research analysts clearly believe DRDGOLD is more favorable than Minco Capital.

Summary

DRDGOLD beats Minco Capital on 8 of the 10 factors compared between the two stocks.

About DRDGOLD

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. It also involved in the exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGOLD Limited was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited is a subsidiary of Sibanye Gold Limited.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.