Head to Head Comparison: Harmony Gold Mining (NYSE:HMY) and Allied Gold (NYSE:AAUC)

Harmony Gold Mining (NYSE:HMY) and Allied Gold (NYSE:AAUC) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Harmony Gold Mining and Allied Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Gold Mining	$73.90 billion	0.15	$792.56 million	$1.69	10.57
Allied Gold	$730.38 million	2.80	-$115.63 million	($0.64)	-27.65

Harmony Gold Mining has higher revenue and earnings than Allied Gold. Allied Gold is trading at a lower price-to-earnings ratio than Harmony Gold Mining, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Harmony Gold Mining and Allied Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Gold Mining	1	3	2	1	2.43
Allied Gold	0	0	0	1	4.00

Harmony Gold Mining currently has a consensus target price of $12.20, indicating a potential downside of 31.71%. Given Harmony Gold Mining’s higher probable upside, equities research analysts plainly believe Harmony Gold Mining is more favorable than Allied Gold.

Profitability

This table compares Harmony Gold Mining and Allied Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmony Gold Mining	N/A	N/A	N/A
Allied Gold	-13.41%	30.88%	9.23%

Insider and Institutional Ownership

31.8% of Harmony Gold Mining shares are owned by institutional investors. 16.0% of Harmony Gold Mining shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Harmony Gold Mining beats Allied Gold on 9 of the 13 factors compared between the two stocks.

About Harmony Gold Mining

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.

About Allied Gold

Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in Canada.