Barrick Gold (GOLD) & Its Competitors Critical Comparison

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

Risk and Volatility

Barrick Gold has a beta of -0.53, indicating that its share price is 153% less volatile than the S&P 500. Comparatively, Barrick Gold’s rivals have a beta of 0.25, indicating that their average share price is 75% less volatile than the S&P 500.

Insider and Institutional Ownership

62.6% of Barrick Gold shares are owned by institutional investors. Comparatively, 35.1% of shares of all “Gold & silver ores” companies are owned by institutional investors. 9.2% of shares of all “Gold & silver ores” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Barrick Gold pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Barrick Gold pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Gold & silver ores” companies pay a dividend yield of 1.2% and pay out 34.6% of their earnings in the form of a dividend. Barrick Gold has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Barrick Gold and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barrick Gold 1 10 6 0 2.29
Barrick Gold Competitors 568 2093 1911 73 2.32

Barrick Gold presently has a consensus price target of $14.82, indicating a potential upside of 8.42%. As a group, “Gold & silver ores” companies have a potential upside of 20.31%. Given Barrick Gold’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Barrick Gold has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Barrick Gold and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Barrick Gold $7.24 billion -$1.55 billion 39.06
Barrick Gold Competitors $1.49 billion -$211.47 million 2.02

Barrick Gold has higher revenue, but lower earnings than its rivals. Barrick Gold is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Barrick Gold and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barrick Gold -21.33% 3.85% 1.68%
Barrick Gold Competitors -13.27% 2.73% 2.00%

Summary

Barrick Gold rivals beat Barrick Gold on 10 of the 15 factors compared.

About Barrick Gold

Barrick Gold Corporation engages in the exploration and development of mineral properties. It primarily explores for gold and copper deposits. The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zaldívar, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia. It also owns gold mines and exploration properties in Africa; and gold projects located in South America and North America. Barrick Gold Corporation has strategic cooperation agreement with Shandong Gold Group Co. Ltd. The company was founded in 1983 and is headquartered in Toronto, Canada.

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