Harmony Gold Mining (NYSE:HMY) and Platinum Group Metals (NYSE:PLG) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Platinum Group Metals and Harmony Gold Mining, as provided by MarketBeat.

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

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

Profitability

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

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

Risk & Volatility

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

Insider and Institutional Ownership

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

Valuation & Earnings

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

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

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.

Summary

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

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.

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.