Critical Comparison: Pershing Gold Corporation (PGLC) versus AngloGold Ashanti Limited (AU)

Pershing Gold Corporation (NASDAQ: PGLC) and AngloGold Ashanti Limited (NYSE:AU) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

19.7% of Pershing Gold Corporation shares are owned by institutional investors. Comparatively, 32.8% of AngloGold Ashanti Limited shares are owned by institutional investors. 39.8% of Pershing Gold Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Pershing Gold Corporation and AngloGold Ashanti Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pershing Gold Corporation N/A N/A -$14.71 million ($0.59) -5.07
AngloGold Ashanti Limited $4.16 billion 0.98 $1.26 billion N/A N/A

AngloGold Ashanti Limited has higher revenue and earnings than Pershing Gold Corporation.

Profitability

This table compares Pershing Gold Corporation and AngloGold Ashanti Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pershing Gold Corporation N/A -43.00% -40.70%
AngloGold Ashanti Limited N/A N/A N/A

Volatility and Risk

Pershing Gold Corporation has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, AngloGold Ashanti Limited has a beta of -1.36, indicating that its stock price is 236% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Pershing Gold Corporation and AngloGold Ashanti Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pershing Gold Corporation 0 0 3 0 3.00
AngloGold Ashanti Limited 1 4 2 0 2.14

Pershing Gold Corporation presently has a consensus target price of $7.88, indicating a potential upside of 163.38%. AngloGold Ashanti Limited has a consensus target price of $12.43, indicating a potential upside of 25.05%. Given Pershing Gold Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Pershing Gold Corporation is more favorable than AngloGold Ashanti Limited.

Dividends

AngloGold Ashanti Limited pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. Pershing Gold Corporation does not pay a dividend.

Summary

AngloGold Ashanti Limited beats Pershing Gold Corporation on 6 of the 11 factors compared between the two stocks.

Pershing Gold Corporation Company Profile

Pershing Gold Corporation is a gold and precious metals exploration company. The Company focuses on exploration, development and mining opportunities in Nevada. The Company is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. The Company operates its business directly and also through its subsidiary, Gold Acquisition Corp. Gold Acquisition Corp. owns and is engaged in conducting exploration on the Relief Canyon Mine property in northwestern Nevada. The Company is engaged in conducting exploration on the Relief Canyon expansion properties. The Relief Canyon Mine includes approximately three open pit mines, heap leach pads consisting of approximately six cells, approximately two solution ponds and a cement block constructed adsorption desorption-recovery (ADR) solution processing circuit. The Pershing Pass property includes approximately 490 lode mining claims. The Company has not generated any revenues.

AngloGold Ashanti Limited 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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