Critical Review: Taseko Mines (NYSE:TGB) vs. Gold Fields (NYSE:GFI)

Gold Fields (NYSE:GFI) and Taseko Mines (NYSE:TGB) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares Gold Fields and Taseko Mines”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Fields	$4.36 billion	3.25	$703.30 million	N/A	N/A
Taseko Mines	$388.86 million	1.69	$61.28 million	$0.19	11.55

Gold Fields has higher revenue and earnings than Taseko Mines.

Volatility and Risk

Gold Fields has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Taseko Mines has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Gold Fields and Taseko Mines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Fields	0	4	2	0	2.33
Taseko Mines	0	0	2	1	3.33

Gold Fields presently has a consensus target price of $15.93, suggesting a potential upside of 0.54%. Taseko Mines has a consensus target price of $3.50, suggesting a potential upside of 59.45%. Given Taseko Mines’ stronger consensus rating and higher possible upside, analysts plainly believe Taseko Mines is more favorable than Gold Fields.

Institutional & Insider Ownership

26.0% of Gold Fields shares are held by institutional investors. Comparatively, 17.9% of Taseko Mines shares are held by institutional investors. 36.8% of Gold Fields shares are held by company insiders. Comparatively, 2.3% of Taseko Mines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Gold Fields and Taseko Mines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Fields	N/A	N/A	N/A
Taseko Mines	13.07%	18.82%	4.78%

Summary

Taseko Mines beats Gold Fields on 7 of the 12 factors compared between the two stocks.

About Gold Fields

Gold Fields Limited operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. It also explores for copper and silver deposits. The company was founded in 1887 and is based in Sandton, South Africa.

About Taseko Mines

Taseko Mines Limited, a mining company, acquires, develops, and operates mineral properties. It explores for copper, molybdenum, gold, niobium, and silver deposits. The company’s principal asset comprises 100% interest owned the Gibraltar mine located in British Columbia. It also holds interest in the Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project located in British Columbia; and the Florence copper project located in Arizona. Taseko Mines Limited was incorporated in 1966 and is headquartered in Vancouver, Canada.