Financial Review: Minco Capital (OTCMKTS:MGHCF) & AngloGold Ashanti (NYSE:AU)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for AngloGold Ashanti and Minco Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AngloGold Ashanti	2	1	4	0	2.29
Minco Capital	0	0	0	0	0.00

AngloGold Ashanti currently has a consensus target price of $49.60, suggesting a potential downside of 24.66%. Given AngloGold Ashanti’s stronger consensus rating and higher possible upside, equities research analysts plainly believe AngloGold Ashanti is more favorable than Minco Capital.

Risk and Volatility

AngloGold Ashanti has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Minco Capital has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares AngloGold Ashanti and Minco Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AngloGold Ashanti	$5.79 billion	4.77	$1.00 billion	$3.76	17.51
Minco Capital	N/A	N/A	-$290,000.00	$0.01	3.84

AngloGold Ashanti has higher revenue and earnings than Minco Capital. Minco Capital is trading at a lower price-to-earnings ratio than AngloGold Ashanti, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AngloGold Ashanti	23.60%	22.54%	13.96%
Minco Capital	N/A	10.65%	10.32%

Institutional and Insider Ownership

36.1% of AngloGold Ashanti shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

AngloGold Ashanti beats Minco Capital on 12 of the 12 factors compared between the two stocks.

About AngloGold Ashanti

AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.

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.