Analyzing Goldcorp (GG) and Its Competitors

Goldcorp (NYSE: GG) is one of 41 publicly-traded companies in the “Gold & silver ores” industry, but how does it compare to its competitors? We will compare Goldcorp to similar companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, risk and dividends.

Analyst Recommendations

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This is a summary of recent recommendations for Goldcorp and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldcorp 0 6 10 1 2.71
Goldcorp Competitors 423 1738 1624 67 2.35

Goldcorp currently has a consensus price target of $17.82, indicating a potential upside of 24.03%. As a group, “Gold & silver ores” companies have a potential upside of 21.80%. Given Goldcorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Goldcorp is more favorable than its competitors.

Insider & Institutional Ownership

52.3% of Goldcorp shares are held by institutional investors. Comparatively, 31.5% of shares of all “Gold & silver ores” companies are held by institutional investors. 10.5% of shares of all “Gold & silver ores” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Goldcorp has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Goldcorp’s competitors have a beta of 0.34, suggesting that their average stock price is 66% less volatile than the S&P 500.

Dividends

Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Goldcorp pays out 20.0% of its earnings in the form of a dividend. As a group, “Gold & silver ores” companies pay a dividend yield of 1.4% and pay out 48.2% of their earnings in the form of a dividend. Goldcorp has raised its dividend for 5 consecutive years.

Profitability

This table compares Goldcorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldcorp 19.22% 3.08% 1.97%
Goldcorp Competitors -8.64% 3.68% 2.67%

Earnings & Valuation

This table compares Goldcorp and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Goldcorp $3.42 billion $658.00 million 35.93
Goldcorp Competitors $1.40 billion $84.66 million 42.60

Goldcorp has higher revenue and earnings than its competitors. Goldcorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Goldcorp beats its competitors on 9 of the 15 factors compared.

About Goldcorp

Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. It primarily explores for gold, silver, lead, zinc, and copper deposits. The company's principal producing mining properties include the Éléonore, Musselwhite, Porcupine, and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine in the Dominican Republic. Goldcorp Inc. was founded in 1954 and is headquartered in Vancouver, Canada.

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