Reviewing AngloGold Ashanti Limited (AU) and Its Peers
AngloGold Ashanti Limited (NYSE: AU) is one of 74 public companies in the “Gold Mining” industry, but how does it weigh in compared to its peers? We will compare AngloGold Ashanti Limited to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.
Insider & Institutional Ownership
32.8% of AngloGold Ashanti Limited shares are held by institutional investors. Comparatively, 44.1% of shares of all “Gold Mining” companies are held by institutional investors. 8.3% of shares of all “Gold Mining” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
AngloGold Ashanti Limited pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. AngloGold Ashanti Limited pays out -22.5% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 0.9% and pay out 56.0% of their earnings in the form of a dividend. AngloGold Ashanti Limited is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Volatility and Risk
AngloGold Ashanti Limited has a beta of -1.45, indicating that its stock price is 245% less volatile than the S&P 500. Comparatively, AngloGold Ashanti Limited’s peers have a beta of -0.23, indicating that their average stock price is 123% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for AngloGold Ashanti Limited and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AngloGold Ashanti Limited||1||3||3||0||2.29|
|AngloGold Ashanti Limited Competitors||483||1835||2170||49||2.39|
AngloGold Ashanti Limited presently has a consensus price target of $12.43, suggesting a potential upside of 28.54%. As a group, “Gold Mining” companies have a potential upside of 50.19%. Given AngloGold Ashanti Limited’s peers stronger consensus rating and higher possible upside, analysts clearly believe AngloGold Ashanti Limited has less favorable growth aspects than its peers.
This table compares AngloGold Ashanti Limited and its peers’ 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|
|AngloGold Ashanti Limited Competitors||-2,700.88%||-9.22%||-4.37%|
Valuation & Earnings
This table compares AngloGold Ashanti Limited and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|AngloGold Ashanti Limited||$4.25 billion||$63.00 million||-24.18|
|AngloGold Ashanti Limited Competitors||$2.41 billion||-$32.21 million||87.74|
AngloGold Ashanti Limited has higher revenue and earnings than its peers. AngloGold Ashanti Limited is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
About AngloGold Ashanti Limited
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.
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