Gold Fields (NYSE:GFI) vs. Solgold (OTCMKTS:SLGGF) Financial Review

Solgold (OTCMKTS:SLGGF) and Gold Fields (NYSE:GFI) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Solgold and Gold Fields, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solgold	0	0	0	0	0.00
Gold Fields	1	5	4	1	2.45

Gold Fields has a consensus target price of $43.88, suggesting a potential upside of 3.88%. Given Gold Fields’ stronger consensus rating and higher possible upside, analysts plainly believe Gold Fields is more favorable than Solgold.

Valuation & Earnings

This table compares Solgold and Gold Fields”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solgold	N/A	N/A	-$36.25 million	($0.01)	-37.40
Gold Fields	$8.75 billion	4.32	$3.57 billion	N/A	N/A

Gold Fields has higher revenue and earnings than Solgold.

Risk & Volatility

Solgold has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Gold Fields has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

24.8% of Gold Fields shares are held by institutional investors. 36.8% of Gold Fields shares 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.

Profitability

This table compares Solgold and Gold Fields’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solgold	N/A	-26.92%	-12.63%
Gold Fields	N/A	N/A	N/A

Summary

Gold Fields beats Solgold on 10 of the 11 factors compared between the two stocks.

About Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.

About Gold Fields

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. It also explores for copper and silver deposits. The company was founded in 1887 and is based in Sandton, South Africa.