Critical Analysis: AngloGold Ashanti (AU) and Its Peers
AngloGold Ashanti (NYSE: AU) is one of 61 publicly-traded companies in the “Gold Mining” industry, but how does it compare to its rivals? We will compare AngloGold Ashanti to similar companies based on the strength of its earnings, institutional ownership, risk, dividends, profitability, analyst recommendations and valuation.
Earnings & Valuation
This table compares AngloGold Ashanti and its rivals revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|AngloGold Ashanti||$4.25 billion||$63.00 million||-26.13|
|AngloGold Ashanti Competitors||$2.41 billion||-$32.21 million||169.39|
AngloGold Ashanti has higher revenue and earnings than its rivals. AngloGold Ashanti is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
AngloGold Ashanti has a beta of -1.45, suggesting that its share price is 245% less volatile than the S&P 500. Comparatively, AngloGold Ashanti’s rivals have a beta of -0.14, suggesting that their average share price is 114% less volatile than the S&P 500.
AngloGold Ashanti pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. AngloGold Ashanti pays out -22.5% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 0.9% and pay out 56.7% of their earnings in the form of a dividend.
This table compares AngloGold Ashanti and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|AngloGold Ashanti Competitors||-2,998.75%||-8.66%||-3.99%|
Institutional and Insider Ownership
31.2% of AngloGold Ashanti shares are held by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are held by institutional investors. 7.9% of shares of all “Gold Mining” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of recent ratings and price targets for AngloGold Ashanti and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AngloGold Ashanti Competitors||471||1831||2141||48||2.39|
AngloGold Ashanti currently has a consensus price target of $11.50, suggesting a potential upside of 10.05%. As a group, “Gold Mining” companies have a potential upside of 48.86%. Given AngloGold Ashanti’s rivals higher possible upside, analysts clearly believe AngloGold Ashanti has less favorable growth aspects than its rivals.
AngloGold Ashanti beats its rivals on 8 of the 14 factors compared.
AngloGold Ashanti Company Profile
AngloGold Ashanti Limited (AngloGold Ashanti) is a gold mining company. The Company’s business activities span the spectrum of the mining value chain. Its main product is gold. Its portfolio includes over 17 mines in approximately nine countries. It also produces silver, uranium and sulfuric acid as by-products. The Company operates through four segments: South Africa, Continental Africa, Australasia and Americas. Its South African operations comprise over four mines and surface production facilities, which include the Vaal River operations, including Kopanang and Moab Khotsong; The West Wits operations, including Mponeng and TauTona, and surface operations. It has operations in Continental Africa in locations, including Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania. The Australasia segment includes the operations in Australia. It consists of Sunrise Dam and Tropicana. The Americas segment includes the operations in Argentina, Brazil and the United States.
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