Gold Fields Limited (NYSE: GFI) and Goldcorp (NYSE:GG) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings for Gold Fields Limited and Goldcorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Fields Limited 2 1 1 0 1.75
Goldcorp 0 10 7 0 2.41

Gold Fields Limited presently has a consensus target price of $3.41, indicating a potential downside of 22.68%. Goldcorp has a consensus target price of $16.64, indicating a potential upside of 27.38%. Given Goldcorp’s stronger consensus rating and higher possible upside, analysts clearly believe Goldcorp is more favorable than Gold Fields Limited.

Profitability

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

Net Margins Return on Equity Return on Assets
Gold Fields Limited N/A N/A N/A
Goldcorp 13.22% 3.43% 2.15%

Dividends

Gold Fields Limited pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Goldcorp pays out 14.5% of its earnings in the form of a dividend. Gold Fields Limited has raised its dividend for 4 consecutive years. Gold Fields Limited is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Gold Fields Limited has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500. Comparatively, Goldcorp has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.

Earnings and Valuation

This table compares Gold Fields Limited and Goldcorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gold Fields Limited $2.79 billion 1.30 $1.18 billion N/A N/A
Goldcorp $3.52 billion 3.21 $1.33 billion $0.55 23.75

Goldcorp has higher revenue and earnings than Gold Fields Limited.

Institutional and Insider Ownership

34.0% of Gold Fields Limited shares are owned by institutional investors. Comparatively, 54.0% of Goldcorp shares are owned by institutional investors. 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.

Summary

Goldcorp beats Gold Fields Limited on 11 of the 15 factors compared between the two stocks.

About Gold Fields Limited

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.

About Goldcorp

Goldcorp Inc. is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company is engaged in the sale of gold, silver, lead, zinc and copper. The Company’s segments include Red Lake Gold Mines Ontario Partnership (Red Lake), Goldcorp Canada Ltd./Goldcorp Inc. (Porcupine), Musselwhite, Les Mines Opinaca Ltee (Eleonore), Minera Penasquito S.A. de C.V. and Camino Rojo S.A. de C.V. (Penasquito), Desarrollos Mineros San Luis S.A. de C.V. (Los Filos), Montana Exploradora de Guatemala S.A. (Marlin), Oroplata S.A. (Cerro Negro), Corredor SpA (Project Corridor), Minera Alumbrera Limited (Alumbrera), El Morro and Pueblo Viejo Dominicana Corporation (Pueblo Viejo). The Company’s principal product is gold dore with the refined gold bullion sold primarily in the London spot market.

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