Analyzing AngloGold Ashanti (AU) and The Competition
AngloGold Ashanti (NYSE: AU) is one of 61 publicly-traded companies in the “Gold Mining” industry, but how does it weigh in compared to its peers? We will compare AngloGold Ashanti to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
This is a breakdown of current recommendations for AngloGold Ashanti and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AngloGold Ashanti Competitors||471||1833||2141||50||2.39|
AngloGold Ashanti currently has a consensus target price of $11.50, indicating a potential upside of 17.95%. As a group, “Gold Mining” companies have a potential upside of 53.75%. Given AngloGold Ashanti’s peers higher probable upside, analysts clearly believe AngloGold Ashanti has less favorable growth aspects than its peers.
AngloGold Ashanti pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. AngloGold Ashanti pays out -22.5% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 1.0% and pay out 67.8% of their earnings in the form of a dividend.
Volatility and Risk
AngloGold Ashanti has a beta of -1.4, indicating that its stock price is 240% less volatile than the S&P 500. Comparatively, AngloGold Ashanti’s peers have a beta of -0.13, indicating that their average stock price is 113% less volatile than the S&P 500.
Institutional and Insider Ownership
31.4% of AngloGold Ashanti shares are owned by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are owned by institutional investors. 7.9% of shares of all “Gold Mining” companies are owned by 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.
Valuation and Earnings
This table compares AngloGold Ashanti and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|AngloGold Ashanti||$4.25 billion||$63.00 million||-24.38|
|AngloGold Ashanti Competitors||$2.41 billion||-$32.21 million||164.31|
AngloGold Ashanti has higher revenue and earnings than its peers. AngloGold Ashanti 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.
This table compares AngloGold Ashanti and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|AngloGold Ashanti Competitors||-2,998.75%||-8.66%||-3.99%|
AngloGold Ashanti beats its peers on 8 of the 14 factors compared.
AngloGold Ashanti Company Profile
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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