Contrasting Theta Gold Mines (OTCMKTS:TGMGF) and AngloGold Ashanti (NYSE:AU)

AngloGold Ashanti (NYSE:AU) and Theta Gold Mines (OTCMKTS:TGMGF) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for AngloGold Ashanti and Theta Gold Mines, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AngloGold Ashanti	1	2	5	0	2.50
Theta Gold Mines	0	0	0	0	0.00

AngloGold Ashanti currently has a consensus target price of $100.33, indicating a potential upside of 12.67%. Given AngloGold Ashanti’s stronger consensus rating and higher probable upside, analysts clearly believe AngloGold Ashanti is more favorable than Theta Gold Mines.

Earnings & Valuation

This table compares AngloGold Ashanti and Theta Gold Mines”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AngloGold Ashanti	$9.89 billion	4.54	$2.64 billion	$5.19	17.16
Theta Gold Mines	N/A	N/A	N/A	N/A	N/A

AngloGold Ashanti has higher revenue and earnings than Theta Gold Mines.

Profitability

This table compares AngloGold Ashanti and Theta Gold Mines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AngloGold Ashanti	26.65%	29.11%	18.98%
Theta Gold Mines	N/A	N/A	N/A

Volatility and Risk

AngloGold Ashanti has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Theta Gold Mines has a beta of -2.07, suggesting that its share price is 307% less volatile than the S&P 500.

Institutional & Insider Ownership

36.1% of AngloGold Ashanti shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

AngloGold Ashanti beats Theta Gold Mines on 9 of the 9 factors compared between the two stocks.

About AngloGold Ashanti

AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.

About Theta Gold Mines

Theta Gold Mines Limited operates as a gold exploration and development company in South Africa. Its principal property is the Theta project located near the town of Pilgrim’s Rest in Mpumalanga Province. The company was formerly known as Stonewall Resources Limited and changed its name to Theta Gold Mines Limited in December 2018. The company was incorporated in 2008 and is based in Sydney, Australia.