Harmony Gold Mining (NYSE:HMY) versus Pelangio Exploration (OTCMKTS:PGXPF) Critical Survey

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

Insider & Institutional Ownership

31.8% of Harmony Gold Mining shares are owned by institutional investors. 16.0% of Harmony Gold Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Harmony Gold Mining and Pelangio Exploration’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmony Gold Mining	N/A	N/A	N/A
Pelangio Exploration	N/A	-778.64%	-87.35%

Risk and Volatility

Harmony Gold Mining has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Valuation and Earnings

This table compares Harmony Gold Mining and Pelangio Exploration”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Gold Mining	$4.07 billion	3.41	$792.56 million	N/A	N/A
Pelangio Exploration	N/A	N/A	-$550,000.00	N/A	N/A

Harmony Gold Mining has higher revenue and earnings than Pelangio Exploration.

Analyst Ratings

This is a breakdown of recent recommendations for Harmony Gold Mining and Pelangio Exploration, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Gold Mining	0	3	2	1	2.67
Pelangio Exploration	0	0	0	0	0.00

Harmony Gold Mining currently has a consensus target price of $16.00, indicating a potential downside of 26.61%. Given Harmony Gold Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Harmony Gold Mining is more favorable than Pelangio Exploration.

Summary

Harmony Gold Mining beats Pelangio Exploration on 11 of the 11 factors compared between the two stocks.

About Harmony Gold Mining

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.

About Pelangio Exploration

Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.