Critical Contrast: DRDGOLD (DRD) vs. Its Competitors

DRDGOLD (NYSE: DRD) is one of 61 public companies in the “Gold Mining” industry, but how does it compare to its peers? We will compare DRDGOLD to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

18.5% of DRDGOLD shares are held by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are held by institutional investors. 1.0% of DRDGOLD shares are held by insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

DRDGOLD has a beta of -1.98, meaning that its stock price is 298% less volatile than the S&P 500. Comparatively, DRDGOLD’s peers have a beta of -0.13, meaning that their average stock price is 113% less volatile than the S&P 500.

Profitability

This table compares DRDGOLD and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DRDGOLD N/A N/A N/A
DRDGOLD Competitors -2,998.75% -8.66% -3.99%

Dividends

DRDGOLD pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. As a group, “Gold Mining” companies pay a dividend yield of 1.0% and pay out 56.6% of their earnings in the form of a dividend. DRDGOLD has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of current ratings for DRDGOLD and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DRDGOLD 0 0 0 0 N/A
DRDGOLD Competitors 471 1833 2141 50 2.39

As a group, “Gold Mining” companies have a potential upside of 53.30%. Given DRDGOLD’s peers higher possible upside, analysts plainly believe DRDGOLD has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares DRDGOLD and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DRDGOLD $172.22 million $1.00 million N/A
DRDGOLD Competitors $2.41 billion -$32.21 million 173.70

DRDGOLD’s peers have higher revenue, but lower earnings than DRDGOLD.

Summary

DRDGOLD peers beat DRDGOLD on 6 of the 11 factors compared.

About DRDGOLD

DRDGOLD Limited is a gold mining company. The Company is engaged in gold production by tailings retreatment. The Company is focused on the recovery of lower-risk, higher-margin ounces primarily from its metallurgical plant located approximately 50 kilometers east of Johannesburg in Brakpan. The Company owns approximately 100% of its holding company, Ergo Mining Operations Proprietary Limited (EMO). Ergo Mining Proprietary Limited (Ergo) is owned by EMO. Ergo has a vast footprint adjacent to Johannesburg on the central and eastern Witwatersrand of South Africa. Its assets cover an area of approximately 62 kilometers from east to west and over 25 kilometers from north to south. The Ergo operation has over two metallurgical plants in operation, including Knights plant and The Ergo plant. The Knights plant in Germiston is treating the Cason dump and depositing waste on the Brakpan tailings facility (BTF). The Ergo plant has a total treatment capacity of 300,000 tons per month (tpm).

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