Head to Head Review: Pan African Resources (PAFRF) versus Its Peers

Pan African Resources (OTCMKTS:PAFRF) is one of 1,989 public companies in the “Metals & Mining” industry, but how does it compare to its peers? We will compare Pan African Resources to related companies based on the strength of its analyst recommendations, valuation, risk, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

22.9% of Pan African Resources shares are held by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are held by institutional investors. 17.6% of shares of all “Metals & Mining” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Pan African Resources pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Pan African Resources pays out 55.0% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.5% and pay out 10.6% of their earnings in the form of a dividend. Pan African Resources lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Pan African Resources and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pan African Resources	N/A	N/A	N/A
Pan African Resources Competitors	-1,155,490,457,955,101,400.00%	-14.54%	-2.08%

Earnings and Valuation

This table compares Pan African Resources and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pan African Resources	N/A	N/A	102.74
Pan African Resources Competitors	$4.63 billion	$267.82 million	-25.18

Pan African Resources’ peers have higher revenue and earnings than Pan African Resources. Pan African Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings for Pan African Resources and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pan African Resources	0	1	0	0	2.00
Pan African Resources Competitors	6314	22414	32027	1760	2.47

As a group, “Metals & Mining” companies have a potential upside of 14.87%. Given Pan African Resources’ peers stronger consensus rating and higher possible upside, analysts clearly believe Pan African Resources has less favorable growth aspects than its peers.

Summary

Pan African Resources peers beat Pan African Resources on 8 of the 13 factors compared.

About Pan African Resources

Pan African Resources PLC engages in the mining, extraction, production, and sale of gold in South Africa. The company’s flagship projects include the Barberton Mines that consists of three underground mines, including Fairview, Sheba, and Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa. Pan African Resources PLC is headquartered in Johannesburg, South Africa.