Contrasting Harmony Gold (HMY) & Its Peers

Harmony Gold (NYSE: HMY) is one of 41 public companies in the “Gold & silver ores” industry, but how does it contrast to its peers? We will compare Harmony Gold to related companies based on the strength of its risk, earnings, institutional ownership, dividends, valuation, analyst recommendations and profitability.

Volatility and Risk

Harmony Gold has a beta of -1.96, meaning that its share price is 296% less volatile than the S&P 500. Comparatively, Harmony Gold’s peers have a beta of 0.34, meaning that their average share price is 66% less volatile than the S&P 500.



Institutional & Insider Ownership

25.7% of Harmony Gold shares are held by institutional investors. Comparatively, 31.4% of shares of all “Gold & silver ores” companies are held by institutional investors. 16.0% of Harmony Gold shares are held by insiders. Comparatively, 10.5% of shares of all “Gold & silver ores” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Harmony Gold and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Harmony Gold $1.42 billion $17.00 million 11.00
Harmony Gold Competitors $1.40 billion $84.66 million 46.31

Harmony Gold has higher revenue, but lower earnings than its peers. Harmony Gold 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.

Dividends

Harmony Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Harmony Gold pays out 9.5% of its earnings in the form of a dividend. As a group, “Gold & silver ores” companies pay a dividend yield of 1.4% and pay out 47.8% of their earnings in the form of a dividend.

Profitability

This table compares Harmony Gold and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harmony Gold N/A N/A N/A
Harmony Gold Competitors -8.65% 3.68% 2.67%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Harmony Gold and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harmony Gold 1 1 1 0 2.00
Harmony Gold Competitors 420 1734 1622 67 2.35

As a group, “Gold & silver ores” companies have a potential upside of 20.74%. Given Harmony Gold’s peers stronger consensus rating and higher possible upside, analysts clearly believe Harmony Gold has less favorable growth aspects than its peers.

Summary

Harmony Gold peers beat Harmony Gold on 11 of the 15 factors compared.

Harmony Gold Company Profile

Harmony Gold Mining Company Limited engages in the exploration and mining of gold in South Africa and Papua New Guinea. The company also explores for copper and silver deposits. It has nine underground operations; an open-pit mine; and various other surface operations in South Africa. The company owns interests in the Hidden Valley, an open-pit gold and silver mine; the Wafi Golpu project in Morobe province; and the Kili Teke gold-copper exploration project in Papua New Guinea. Harmony Gold Mining Company Limited was incorporated in 1950 and is based in Randfontein, South Africa.

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