Head-To-Head Contrast: Harmony Gold Mining (NYSE:HMY) & Platinum Group Metals (NYSE:PLG)

Harmony Gold Mining (NYSE:HMY) and Platinum Group Metals (NYSE:PLG) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares Harmony Gold Mining and Platinum Group Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmony Gold Mining	N/A	N/A	N/A
Platinum Group Metals	N/A	-9.56%	-9.20%

Earnings and Valuation

This table compares Harmony Gold Mining and Platinum Group Metals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Gold Mining	$3.31 billion	1.67	$459.40 million	$1.38	6.29
Platinum Group Metals	N/A	N/A	-$4.61 million	($0.06)	-25.83

Harmony Gold Mining has higher revenue and earnings than Platinum Group Metals. Platinum Group Metals is trading at a lower price-to-earnings ratio than Harmony Gold Mining, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Harmony Gold Mining has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Harmony Gold Mining and Platinum Group Metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Gold Mining	1	2	0	0	1.67
Platinum Group Metals	0	0	0	0	0.00

Harmony Gold Mining presently has a consensus price target of $8.40, indicating a potential downside of 3.23%. Given Harmony Gold Mining’s stronger consensus rating and higher possible upside, equities analysts plainly believe Harmony Gold Mining is more favorable than Platinum Group Metals.

Institutional and Insider Ownership

31.8% of Harmony Gold Mining shares are owned by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are owned by institutional investors. 16.0% of Harmony Gold Mining shares are owned by company insiders. Comparatively, 0.0% of Platinum Group Metals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Harmony Gold Mining beats Platinum Group Metals on 10 of the 11 factors compared between the two stocks.

About Harmony Gold Mining

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.