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

Profitability

This table compares Goldcorp and Gold Fields Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldcorp 13.22% 3.43% 2.15%
Gold Fields Limited N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Goldcorp and Gold Fields Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldcorp 0 10 6 0 2.38
Gold Fields Limited 2 1 1 0 1.75

Goldcorp currently has a consensus target price of $16.64, indicating a potential upside of 29.26%. Gold Fields Limited has a consensus target price of $3.41, indicating a potential downside of 20.70%. Given Goldcorp’s stronger consensus rating and higher possible upside, analysts clearly believe Goldcorp is more favorable than Gold Fields Limited.

Dividends

Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Gold Fields Limited pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Goldcorp pays out 14.5% of its earnings in the form of a dividend. Goldcorp has raised its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Goldcorp and Gold Fields Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Goldcorp $3.52 billion 3.16 $1.33 billion $0.55 23.40
Gold Fields Limited $2.79 billion 1.27 $1.18 billion N/A N/A

Goldcorp has higher revenue and earnings than Gold Fields Limited.

Risk and Volatility

Goldcorp has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, Gold Fields Limited has a beta of -1.04, indicating that its stock price is 204% less volatile than the S&P 500.

Insider and Institutional Ownership

54.0% of Goldcorp shares are owned by institutional investors. Comparatively, 34.0% of Gold Fields Limited shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Goldcorp beats Gold Fields Limited on 12 of the 15 factors compared between the two stocks.

About Goldcorp

Goldcorp Inc. is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company is engaged in the sale of gold, silver, lead, zinc and copper. The Company’s segments include Red Lake Gold Mines Ontario Partnership (Red Lake), Goldcorp Canada Ltd./Goldcorp Inc. (Porcupine), Musselwhite, Les Mines Opinaca Ltee (Eleonore), Minera Penasquito S.A. de C.V. and Camino Rojo S.A. de C.V. (Penasquito), Desarrollos Mineros San Luis S.A. de C.V. (Los Filos), Montana Exploradora de Guatemala S.A. (Marlin), Oroplata S.A. (Cerro Negro), Corredor SpA (Project Corridor), Minera Alumbrera Limited (Alumbrera), El Morro and Pueblo Viejo Dominicana Corporation (Pueblo Viejo). The Company’s principal product is gold dore with the refined gold bullion sold primarily in the London spot market.

About Gold Fields Limited

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.

Receive News & Ratings for Goldcorp Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Goldcorp Inc. and related companies with MarketBeat.com's FREE daily email newsletter.