Analyzing Harmony Gold Mining (NYSE:HMY) & Pelangio Exploration (OTCMKTS:PGXPF)
by Teresa Graham · The Cerbat GemPelangio Exploration (OTCMKTS:PGXPF – Get Free Report) and Harmony Gold Mining (NYSE:HMY – Get Free Report) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Institutional and Insider Ownership
31.8% of Harmony Gold Mining shares are owned by institutional investors. 16.0% of Harmony Gold Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Pelangio Exploration has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Harmony Gold Mining has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Profitability
This table compares Pelangio Exploration and Harmony Gold Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pelangio Exploration | N/A | -778.64% | -87.35% |
| Harmony Gold Mining | N/A | N/A | N/A |
Valuation & Earnings
This table compares Pelangio Exploration and Harmony Gold Mining”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pelangio Exploration | N/A | N/A | -$550,000.00 | N/A | N/A |
| Harmony Gold Mining | $4.07 billion | 3.41 | $792.56 million | N/A | N/A |
Harmony Gold Mining has higher revenue and earnings than Pelangio Exploration.
Analyst Ratings
This is a summary of current ratings and price targets for Pelangio Exploration and Harmony Gold Mining, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pelangio Exploration | 0 | 0 | 0 | 0 | 0.00 |
| Harmony Gold Mining | 0 | 3 | 2 | 1 | 2.67 |
Harmony Gold Mining has a consensus target price of $16.00, suggesting a potential downside of 26.61%. Given Harmony Gold Mining’s stronger consensus rating and higher probable upside, analysts clearly believe Harmony Gold Mining is more favorable than Pelangio Exploration.
Summary
Harmony Gold Mining beats Pelangio Exploration on 11 of the 11 factors compared between the two stocks.
About Pelangio Exploration
Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.
About Harmony Gold Mining
Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.