Head to Head Analysis: Gold Fields (NYSE:GFI) and McEwen Mining (NYSE:MUX)

McEwen Mining (NYSE:MUX) and Gold Fields (NYSE:GFI) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

25.2% of McEwen Mining shares are owned by institutional investors. Comparatively, 44.3% of Gold Fields shares are owned by institutional investors. 22.7% of McEwen Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares McEwen Mining and Gold Fields’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McEwen Mining -48.87% -10.14% -8.23%
Gold Fields N/A N/A N/A

Dividends

Gold Fields pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. McEwen Mining does not pay a dividend. Gold Fields pays out 28.6% of its earnings in the form of a dividend.

Volatility & Risk

McEwen Mining has a beta of -0.41, indicating that its share price is 141% less volatile than the S&P 500. Comparatively, Gold Fields has a beta of -0.9, indicating that its share price is 190% less volatile than the S&P 500.

Earnings & Valuation

This table compares McEwen Mining and Gold Fields’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McEwen Mining $128.82 million 5.23 -$44.87 million ($0.13) -14.38
Gold Fields $2.58 billion 1.80 -$348.20 million $0.07 80.86

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for McEwen Mining and Gold Fields, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McEwen Mining 0 0 2 0 3.00
Gold Fields 1 3 2 0 2.17

McEwen Mining currently has a consensus price target of $3.00, suggesting a potential upside of 60.43%. Gold Fields has a consensus price target of $4.08, suggesting a potential downside of 27.96%. Given McEwen Mining’s stronger consensus rating and higher probable upside, equities analysts plainly believe McEwen Mining is more favorable than Gold Fields.

Summary

Gold Fields beats McEwen Mining on 8 of the 15 factors compared between the two stocks.

About McEwen Mining

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.

About Gold Fields

Gold Fields Limited operates as a gold producer with reserves and resources in South Africa, Ghana, Australia, and Peru. It holds interests in 7 operating mines with an annual gold-equivalent production of approximately 2.2 million ounces, as well as gold mineral reserves of approximately 49 million ounces and mineral resources of approximately 104 million ounces. The company also holds copper mineral reserves totaling 764 million pounds and mineral resources totaling 4,881 million pounds. Gold Fields Limited was founded in 1887 and is based in Sandton, South Africa.

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