Head to Head Review: Harmony Gold Mining (NYSE:HMY) vs. Solgold (OTCMKTS:SLGGF)

Harmony Gold Mining (NYSE:HMY) and Solgold (OTCMKTS:SLGGF) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Profitability

This table compares Harmony Gold Mining and Solgold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmony Gold Mining	N/A	N/A	N/A
Solgold	N/A	-26.92%	-12.63%

Risk & Volatility

Harmony Gold Mining has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Solgold has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Earnings & Valuation

This table compares Harmony Gold Mining and Solgold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Gold Mining	$4.07 billion	2.43	$792.56 million	N/A	N/A
Solgold	N/A	N/A	-$36.25 million	($0.01)	-37.40

Harmony Gold Mining has higher revenue and earnings than Solgold.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Harmony Gold Mining and Solgold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Gold Mining	0	3	2	1	2.67
Solgold	0	0	0	0	0.00

Harmony Gold Mining currently has a consensus price target of $16.00, indicating a potential upside of 3.03%. Given Harmony Gold Mining’s stronger consensus rating and higher possible upside, equities analysts plainly believe Harmony Gold Mining is more favorable than Solgold.

Institutional & Insider Ownership

31.8% of Harmony Gold Mining shares are owned by institutional investors. 16.0% of Harmony Gold Mining shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Harmony Gold Mining beats Solgold on 10 of the 11 factors compared between the two stocks.

About Harmony Gold Mining

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.

About Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.