Contrasting Gold Fields (NYSE:GFI) and Platinum Group Metals (NYSE:PLG)

Gold Fields (NYSE:GFI) and Platinum Group Metals (NYSE:PLG) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Gold Fields and Platinum Group Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Fields	0	4	2	0	2.33
Platinum Group Metals	0	0	0	0	0.00

Gold Fields currently has a consensus price target of $16.45, indicating a potential downside of 12.59%. Given Gold Fields’ stronger consensus rating and higher probable upside, equities analysts clearly believe Gold Fields is more favorable than Platinum Group Metals.

Valuation and Earnings

This table compares Gold Fields and Platinum Group Metals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Fields	$4.50 billion	3.74	$703.30 million	N/A	N/A
Platinum Group Metals	N/A	N/A	-$4.61 million	($0.06)	-23.17

Gold Fields has higher revenue and earnings than Platinum Group Metals.

Profitability

This table compares Gold Fields and Platinum Group Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Fields	N/A	N/A	N/A
Platinum Group Metals	N/A	-10.13%	-9.69%

Risk and Volatility

Gold Fields has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.

Insider & Institutional Ownership

24.8% of Gold Fields shares are held by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are held by institutional investors. 36.8% of Gold Fields shares are held by company insiders. Comparatively, 0.0% of Platinum Group Metals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Gold Fields beats Platinum Group Metals on 9 of the 10 factors compared between the two stocks.

About Gold Fields

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. It also explores for copper and silver deposits. The company was founded in 1887 and is based in Sandton, South Africa.

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.