Financial Review: Barrick Gold (NYSE:GOLD) vs. Its Rivals

Barrick Gold (NYSE: GOLD) is one of 42 public companies in the “Gold & silver ores” industry, but how does it weigh in compared to its peers? We will compare Barrick Gold to similar companies based on the strength of its profitability, risk, institutional ownership, earnings, dividends, valuation and analyst recommendations.

Valuation and Earnings

This table compares Barrick Gold and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Barrick Gold $7.24 billion -$1.55 billion 38.94
Barrick Gold Competitors $1.54 billion -$207.90 million 8.09

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

Insider & Institutional Ownership

41.7% of Barrick Gold shares are owned by institutional investors. Comparatively, 35.3% of shares of all “Gold & silver ores” companies are owned by institutional investors. 9.3% of shares of all “Gold & silver ores” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Barrick Gold has a beta of -0.52, meaning that its share price is 152% less volatile than the S&P 500. Comparatively, Barrick Gold’s peers have a beta of 0.27, meaning that their average share price is 73% less volatile than the S&P 500.

Dividends

Barrick Gold pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. 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 43.1% of their earnings in the form of a dividend. Barrick Gold has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and price targets for Barrick Gold and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barrick Gold 1 9 6 0 2.31
Barrick Gold Competitors 585 2212 1975 74 2.32

Barrick Gold presently has a consensus target price of $14.50, indicating a potential upside of 6.38%. As a group, “Gold & silver ores” companies have a potential upside of 23.81%. Given Barrick Gold’s peers stronger consensus rating and higher probable upside, analysts plainly believe Barrick Gold has less favorable growth aspects than its peers.

Profitability

This table compares Barrick Gold and its peers’ 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 -13.64% 2.51% 1.84%

Summary

Barrick Gold peers 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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