Pershing Gold Corp (NASDAQ: PGLC) and Barrick Gold Corporation (NYSE:ABX) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Pershing Gold Corp has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Barrick Gold Corporation has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500.
Institutional & Insider Ownership
19.7% of Pershing Gold Corp shares are held by institutional investors. Comparatively, 55.7% of Barrick Gold Corporation shares are held by institutional investors. 39.8% of Pershing Gold Corp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Pershing Gold Corp and Barrick Gold Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pershing Gold Corp||0||0||3||0||3.00|
|Barrick Gold Corporation||0||8||5||0||2.38|
Pershing Gold Corp currently has a consensus target price of $7.88, suggesting a potential upside of 149.21%. Barrick Gold Corporation has a consensus target price of $19.99, suggesting a potential upside of 20.06%. Given Pershing Gold Corp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Pershing Gold Corp is more favorable than Barrick Gold Corporation.
Barrick Gold Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. Pershing Gold Corp does not pay a dividend. Barrick Gold Corporation pays out 5.9% of its earnings in the form of a dividend.
This table compares Pershing Gold Corp and Barrick Gold Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pershing Gold Corp||N/A||-37.33%||-35.50%|
|Barrick Gold Corporation||26.95%||8.91%||3.71%|
Valuation & Earnings
This table compares Pershing Gold Corp and Barrick Gold Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pershing Gold Corp||N/A||N/A||-$14.71 million||($0.59)||-5.36|
|Barrick Gold Corporation||$8.77 billion||2.21||$4.42 billion||$2.02||8.24|
Barrick Gold Corporation has higher revenue and earnings than Pershing Gold Corp. Pershing Gold Corp is trading at a lower price-to-earnings ratio than Barrick Gold Corporation, indicating that it is currently the more affordable of the two stocks.
Barrick Gold Corporation beats Pershing Gold Corp on 9 of the 14 factors compared between the two stocks.
Pershing Gold Corp 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.
Barrick Gold Corporation Company Profile
Barrick Gold Corporation (Barrick) is a gold mining company. The Company is principally engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary, Acacia, owns gold mines and exploration properties in Africa. It also holds interest in gold mines, including Porgera and Kalgoorlie, and copper mines, such as Zaldivar and Lumwana. The Pascua-Lama project is located on the border between Chile and Argentina. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.
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