AngloGold Ashanti Limited (NYSE: AU) and Eldorado Gold Corporation (NYSE:EGO) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for AngloGold Ashanti Limited and Eldorado Gold Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AngloGold Ashanti Limited 1 4 2 0 2.14
Eldorado Gold Corporation 2 5 2 0 2.00

AngloGold Ashanti Limited presently has a consensus price target of $12.43, indicating a potential upside of 17.15%. Eldorado Gold Corporation has a consensus price target of $4.74, indicating a potential upside of 129.98%. Given Eldorado Gold Corporation’s higher possible upside, analysts clearly believe Eldorado Gold Corporation is more favorable than AngloGold Ashanti Limited.

Dividends

AngloGold Ashanti Limited pays an annual dividend of $0.09 per share and has a dividend yield of 0.8%. Eldorado Gold Corporation does not pay a dividend.

Insider and Institutional Ownership

32.8% of AngloGold Ashanti Limited shares are owned by institutional investors. Comparatively, 55.1% of Eldorado Gold Corporation shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares AngloGold Ashanti Limited and Eldorado Gold Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AngloGold Ashanti Limited $4.16 billion 1.04 $1.26 billion N/A N/A
Eldorado Gold Corporation $425.59 million 3.46 $143.89 million $0.01 206.21

AngloGold Ashanti Limited has higher revenue and earnings than Eldorado Gold Corporation.

Volatility and Risk

AngloGold Ashanti Limited has a beta of -1.36, meaning that its stock price is 236% less volatile than the S&P 500. Comparatively, Eldorado Gold Corporation has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Profitability

This table compares AngloGold Ashanti Limited and Eldorado Gold Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AngloGold Ashanti Limited N/A N/A N/A
Eldorado Gold Corporation 1.00% 1.41% 1.04%

Summary

Eldorado Gold Corporation beats AngloGold Ashanti Limited on 7 of the 11 factors compared between the two stocks.

AngloGold Ashanti Limited Company Profile

AngloGold Ashanti Limited (AngloGold Ashanti) is a gold mining company. The Company’s business activities span the spectrum of the mining value chain. Its main product is gold. Its portfolio includes over 17 mines in approximately nine countries. It also produces silver, uranium and sulfuric acid as by-products. The Company operates through four segments: South Africa, Continental Africa, Australasia and Americas. Its South African operations comprise over four mines and surface production facilities, which include the Vaal River operations, including Kopanang and Moab Khotsong; The West Wits operations, including Mponeng and TauTona, and surface operations. It has operations in Continental Africa in locations, including Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania. The Australasia segment includes the operations in Australia. It consists of Sunrise Dam and Tropicana. The Americas segment includes the operations in Argentina, Brazil and the United States.

Eldorado Gold Corporation Company Profile

Eldorado Gold Corporation (Eldorado) is a gold exploration, development and mining company. The Company’s geographical segments include Turkey, Brazil, Greece, Romania and Other. The Turkey segment includes the Kisladag and the Efemcukuru mines and exploration activities in Turkey. The Brazil segment includes the Vila Nova mine, Tocantinzinho project and exploration activities in Brazil. The Greece segment includes the Stratoni mine, the Olympias, Skouries, Perama Hill and Sapes projects, and exploration activities in Greece. The Romania segment includes the Certej project and exploration activities in Romania. Other segment includes operations of the Company’s corporate office and exploration activities in other countries. The Company has operations and ongoing exploration and development projects in Turkey, Greece, Brazil and Romania. Its Operating gold mines include Kisladag in Turkey, and Efemcukuru in Turkey.

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