Randgold Resources Limited (NASDAQ: GOLD) and Gold Fields Limited (NYSE:GFI) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitabiliy and risk.

Insider & Institutional Ownership

36.5% of Randgold Resources Limited shares are owned by institutional investors. Comparatively, 33.3% of Gold Fields Limited shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Randgold Resources Limited has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Gold Fields Limited has a beta of -1.06, meaning that its stock price is 206% less volatile than the S&P 500.

Dividends

Randgold Resources Limited pays an annual dividend of $1.96 per share and has a dividend yield of 2.2%. Gold Fields Limited pays an annual dividend of $0.07 per share and has a dividend yield of 2.0%. Randgold Resources Limited pays out 70.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Randgold Resources Limited and Gold Fields Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Randgold Resources Limited 1 6 10 0 2.53
Gold Fields Limited 3 1 2 0 1.83

Randgold Resources Limited currently has a consensus price target of $102.33, indicating a potential upside of 12.53%. Gold Fields Limited has a consensus price target of $4.87, indicating a potential upside of 42.25%. Given Gold Fields Limited’s higher possible upside, analysts clearly believe Gold Fields Limited is more favorable than Randgold Resources Limited.

Valuation and Earnings

This table compares Randgold Resources Limited and Gold Fields Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Randgold Resources Limited $1.26 billion 6.79 $612.41 million $2.77 32.83
Gold Fields Limited $2.75 billion 1.02 $1.17 billion N/A N/A

Gold Fields Limited has higher revenue and earnings than Randgold Resources Limited.

Profitability

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

Net Margins Return on Equity Return on Assets
Randgold Resources Limited 21.04% 7.10% 6.60%
Gold Fields Limited N/A N/A N/A

Summary

Randgold Resources Limited beats Gold Fields Limited on 9 of the 13 factors compared between the two stocks.

Randgold Resources Limited Company Profile

Randgold Resources Limited is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. As of December 31, 2016, Morila mine has produced 122,370 ounces (oz) of gold. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. As of December 31, 2016, Loulo mine has produced 350,604 oz of gold. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA.

Gold Fields Limited Company Profile

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.

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