Analyzing Gold Fields (NYSE:GFI) and Minco Capital (OTCMKTS:MGHCF)

Gold Fields (NYSE:GFI) and Minco Capital (OTCMKTS:MGHCF) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Insider and Institutional Ownership

24.8% of Gold Fields shares are owned by institutional investors. 36.8% of Gold Fields shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gold Fields and Minco Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Fields	2	4	5	0	2.27
Minco Capital	0	0	0	0	0.00

Gold Fields currently has a consensus target price of $49.75, suggesting a potential upside of 11.21%. Given Gold Fields’ stronger consensus rating and higher possible upside, equities analysts plainly believe Gold Fields is more favorable than Minco Capital.

Valuation and Earnings

This table compares Gold Fields and Minco Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Fields	$8.75 billion	4.58	$3.57 billion	N/A	N/A
Minco Capital	N/A	N/A	$3.36 million	$0.08	1.00

Gold Fields has higher revenue and earnings than Minco Capital.

Volatility and Risk

Gold Fields has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Minco Capital has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gold Fields	N/A	N/A	N/A
Minco Capital	N/A	24.60%	24.03%

Summary

Gold Fields beats Minco Capital on 8 of the 10 factors compared between the two stocks.

About Gold Fields

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. It also explores for copper and silver deposits. The company was founded in 1887 and is based in Sandton, South Africa.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.