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

Insider & Institutional Ownership

25.1% of Harmony Gold Mining Company Limited shares are owned by institutional investors. Comparatively, 63.3% of Alamos Gold shares are owned by institutional investors. 16.0% of Harmony Gold Mining Company Limited shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Harmony Gold Mining Company Limited pays an annual dividend of $0.03 per share and has a dividend yield of 1.6%. Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Alamos Gold pays out -40.0% of its earnings in the form of a dividend.

Volatility and Risk

Harmony Gold Mining Company Limited has a beta of -1.97, suggesting that its stock price is 297% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Harmony Gold Mining Company Limited and Alamos Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harmony Gold Mining Company Limited 2 3 0 0 1.60
Alamos Gold 0 2 1 0 2.33

Alamos Gold has a consensus price target of $10.67, indicating a potential upside of 48.15%. Given Alamos Gold’s stronger consensus rating and higher possible upside, analysts plainly believe Alamos Gold is more favorable than Harmony Gold Mining Company Limited.

Profitability

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

Net Margins Return on Equity Return on Assets
Harmony Gold Mining Company Limited N/A N/A N/A
Alamos Gold -2.61% 0.44% 0.33%

Valuation and Earnings

This table compares Harmony Gold Mining Company Limited and Alamos Gold’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Harmony Gold Mining Company Limited $1.49 billion 0.55 $320.26 million N/A N/A
Alamos Gold $510.10 million 4.24 $153.90 million ($0.05) -143.97

Harmony Gold Mining Company Limited has higher revenue and earnings than Alamos Gold.

Summary

Alamos Gold beats Harmony Gold Mining Company Limited on 9 of the 14 factors compared between the two stocks.

Harmony Gold Mining Company Limited Company Profile

Harmony Gold Mining Company Limited, through its subsidiaries, is engaged in gold mining and related activities, including exploration, extraction and processing. The Company’s segments include South Africa Underground, Surface, and International. The South Africa Underground segment includes Kusasalethu, Doornkop, Phakisa, Tshepong, Masimong, Target 1, Bambanani, Joel, Unisel and Target 3. The Surface segment comprises the Company’s other surface operations. The Company’s International segment comprises Hidden Valley Project. The Company has operations in South Africa and Papua New Guinea (PNG). The Company’s principal product is the Gold bullion. The Company’s exploration projects include Golpu project and Kili Teke prospect. The Company has approximately nine underground mines, one open pit operation and several surface sources in South Africa. The Company’s subsidiaries include Lydenburg Exploration Limited, Tswelopele Beneficiation Operation (TBO) and Harmony Copper Limited.

Alamos Gold Company Profile

Alamos Gold Inc. is a Canada-based mid-tier gold producer. The Company owns and operates the Mulatos Mine, as well as the Esperanza, Agi Dagi, Kirazli and Camyurt gold development projects. The Mulatos mine is located within the 30,536 hectares Salamandra group of concessions in the state of Sonora in northwest Mexico. The Esperanza Gold Project is a development stage asset located in south-central Mexico in the state of Morelos. Agi Dagi and Kirazli gold development projects are located in Canakkale Province on the Biga Peninsula of northwestern Turkey. The Camyurt project is located near southeast of Canakkale, Turkey. In addition, the Company owns a 100% interest in the Quartz Mountain Property, which is located on the northern extension of the prolific Basin and Range Province of Nevada in Oregon.

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