Pershing Gold (NYSE: AUY) and Yamana Gold (NYSE:AUY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares Pershing Gold and Yamana Gold’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pershing Gold N/A N/A -$13.09 million ($0.50) -2.20
Yamana Gold $1.80 billion 1.42 -$194.40 million $0.08 33.75

Pershing Gold has higher earnings, but lower revenue than Yamana Gold. Pershing Gold is trading at a lower price-to-earnings ratio than Yamana Gold, indicating that it is currently the more affordable of the two stocks.

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Pershing Gold does not pay a dividend. Yamana Gold pays out 25.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for Pershing Gold and Yamana Gold, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pershing Gold 0 0 2 0 3.00
Yamana Gold 0 3 8 0 2.73

Pershing Gold presently has a consensus target price of $7.38, suggesting a potential upside of 570.45%. Yamana Gold has a consensus target price of $4.00, suggesting a potential upside of 48.15%. Given Pershing Gold’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Pershing Gold is more favorable than Yamana Gold.

Risk & Volatility

Pershing Gold has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Yamana Gold has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Institutional and Insider Ownership

21.0% of Pershing Gold shares are owned by institutional investors. Comparatively, 43.3% of Yamana Gold shares are owned by institutional investors. 37.1% of Pershing Gold shares are owned by insiders. Comparatively, 2.7% of Yamana Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Pershing Gold and Yamana Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pershing Gold N/A -38.29% -36.16%
Yamana Gold -15.63% 3.49% 1.77%

Summary

Yamana Gold beats Pershing Gold on 9 of the 15 factors compared between the two stocks.

About Pershing Gold

Pershing Gold Corporation explores for, develops, and mines gold and precious metals in Nevada. It focuses on the exploration of the Relief Canyon properties covering an area of approximately 29,000 acres located in Pershing County in northwestern Nevada. The Relief Canyon properties include approximately 1,056 owned unpatented mining claims, 120 owned millsite claims, 143 leased unpatented mining claims, and 4,127 acres of leased and 3,739 acres of subleased private lands. The company was formerly known as Sagebrush Gold Ltd. and changed its name to Pershing Gold Corporation in February 2012. Pershing Gold Corporation is based in Lakewood, Colorado.

About Yamana Gold

Yamana Gold Inc. operates as a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina. It primarily sells precious metals, including gold, silver, and copper. The company was formerly known as Yamana Resources Inc. and changed its name to Yamana Gold Inc. in July 2003. Yamana Gold Inc. was founded in 1980 and is based in Toronto, Canada.

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