DRDGOLD (DRD) vs. Its Rivals Head-To-Head Analysis

DRDGOLD (NYSE: DRD) is one of 61 publicly-traded companies in the “Gold Mining” industry, but how does it contrast to its rivals? We will compare DRDGOLD to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Valuation & Earnings

This table compares DRDGOLD and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DRDGOLD $172.22 million $1.00 million 164.00
DRDGOLD Competitors $2.41 billion -$32.21 million 169.33

DRDGOLD’s rivals have higher revenue, but lower earnings than DRDGOLD. DRDGOLD is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

18.5% of DRDGOLD shares are held by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are held by institutional investors. 1.0% of DRDGOLD shares are held by company insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares DRDGOLD and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DRDGOLD N/A N/A N/A
DRDGOLD Competitors -2,998.75% -8.66% -3.99%

Volatility & Risk

DRDGOLD has a beta of -2, suggesting that its share price is 300% less volatile than the S&P 500. Comparatively, DRDGOLD’s rivals have a beta of -0.14, suggesting that their average share price is 114% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for DRDGOLD and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DRDGOLD 0 0 0 0 N/A
DRDGOLD Competitors 471 1831 2141 48 2.39

As a group, “Gold Mining” companies have a potential upside of 48.28%. Given DRDGOLD’s rivals higher possible upside, analysts clearly believe DRDGOLD has less favorable growth aspects than its rivals.

Dividends

DRDGOLD pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. DRDGOLD pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Gold Mining” companies pay a dividend yield of 0.9% and pay out 56.7% of their earnings in the form of a dividend. DRDGOLD has increased its dividend for 4 consecutive years. DRDGOLD lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

DRDGOLD rivals beat DRDGOLD on 7 of the 11 factors compared.

DRDGOLD Company Profile

DRDGOLD Limited is a gold mining company. The Company is engaged in gold production by tailings retreatment. The Company is focused on the recovery of lower-risk, higher-margin ounces primarily from its metallurgical plant located approximately 50 kilometers east of Johannesburg in Brakpan. The Company owns approximately 100% of its holding company, Ergo Mining Operations Proprietary Limited (EMO). Ergo Mining Proprietary Limited (Ergo) is owned by EMO. Ergo has a vast footprint adjacent to Johannesburg on the central and eastern Witwatersrand of South Africa. Its assets cover an area of approximately 62 kilometers from east to west and over 25 kilometers from north to south. The Ergo operation has over two metallurgical plants in operation, including Knights plant and The Ergo plant. The Knights plant in Germiston is treating the Cason dump and depositing waste on the Brakpan tailings facility (BTF). The Ergo plant has a total treatment capacity of 300,000 tons per month (tpm).

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