Randgold Resources (GOLD) & Its Competitors Head-To-Head Review

Randgold Resources (NASDAQ: GOLD) is one of 41 public companies in the “Gold & silver ores” industry, but how does it compare to its competitors? We will compare Randgold Resources to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Profitability

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This table compares Randgold Resources and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Randgold Resources 21.72% 7.13% 6.63%
Randgold Resources Competitors -8.65% 3.68% 2.67%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Randgold Resources and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Randgold Resources 1 4 8 0 2.54
Randgold Resources Competitors 419 1731 1622 67 2.35

Randgold Resources presently has a consensus price target of $69.17, suggesting a potential downside of 14.97%. As a group, “Gold & silver ores” companies have a potential upside of 33.71%. Given Randgold Resources’ competitors higher probable upside, analysts clearly believe Randgold Resources has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Randgold Resources and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Randgold Resources $1.28 billion $278.01 million 27.86
Randgold Resources Competitors $1.40 billion $84.66 million 45.03

Randgold Resources’ competitors have higher revenue, but lower earnings than Randgold Resources. Randgold Resources is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Randgold Resources has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Randgold Resources’ competitors have a beta of 0.34, indicating that their average stock price is 66% less volatile than the S&P 500.

Dividends

Randgold Resources pays an annual dividend of $1.98 per share and has a dividend yield of 2.4%. Randgold Resources pays out 67.8% of its earnings in the form of a dividend. As a group, “Gold & silver ores” companies pay a dividend yield of 1.4% and pay out 47.8% of their earnings in the form of a dividend.

Institutional and Insider Ownership

35.3% of Randgold Resources shares are held by institutional investors. Comparatively, 31.4% of shares of all “Gold & silver ores” companies are held by institutional investors. 10.5% of shares of all “Gold & silver ores” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Randgold Resources beats its competitors on 8 of the 15 factors compared.

Randgold Resources Company Profile

Randgold Resources Limited is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. As of December 31, 2016, Morila mine has produced 122,370 ounces (oz) of gold. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. As of December 31, 2016, Loulo mine has produced 350,604 oz of gold. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA.

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