Head-To-Head Contrast: Gold Fields Limited (GFI) vs. Randgold Resources Limited (GOLD)

Gold Fields Limited (NYSE: GFI) and Randgold Resources Limited (NASDAQ:GOLD) are both mid-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitabiliy.

Analyst Ratings

This is a breakdown of recent recommendations for Gold Fields Limited and Randgold Resources Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Fields Limited 3 1 2 0 1.83
Randgold Resources Limited 1 6 10 0 2.53

Gold Fields Limited currently has a consensus target price of $4.87, indicating a potential upside of 42.25%. Randgold Resources Limited has a consensus target price of $102.33, indicating a potential upside of 12.53%. Given Gold Fields Limited’s higher probable upside, equities analysts clearly believe Gold Fields Limited is more favorable than Randgold Resources Limited.

Risk & Volatility

Gold Fields Limited has a beta of -1.06, suggesting that its stock price is 206% less volatile than the S&P 500. Comparatively, Randgold Resources Limited has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Profitability

This table compares Gold Fields Limited and Randgold Resources Limited’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
Randgold Resources Limited 21.04% 7.10% 6.60%

Valuation and Earnings

This table compares Gold Fields Limited and Randgold Resources Limited’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 $2.75 billion 1.02 $1.17 billion N/A N/A
Randgold Resources Limited $1.26 billion 6.79 $612.41 million $2.77 32.83

Gold Fields Limited has higher revenue and earnings than Randgold Resources Limited.

Institutional & Insider Ownership

33.3% of Gold Fields Limited shares are owned by institutional investors. Comparatively, 36.5% of Randgold Resources Limited shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Gold Fields Limited pays an annual dividend of $0.07 per share and has a dividend yield of 2.0%. Randgold Resources Limited pays an annual dividend of $1.96 per share and has a dividend yield of 2.2%. Randgold Resources Limited pays out 70.8% of its earnings in the form of a dividend.

Summary

Randgold Resources Limited beats Gold Fields Limited on 9 of the 13 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.

Randgold Resources Limited Company Profile

Randgold Resources Limited is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. As of December 31, 2016, Morila mine has produced 122,370 ounces (oz) of gold. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. As of December 31, 2016, Loulo mine has produced 350,604 oz of gold. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA.

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