Analyzing Gold Fields (NYSE:GFI) & Platinum Group Metals (NYSE:PLG)

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

Insider & Institutional Ownership

24.8% of Gold Fields shares are held by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are held by institutional investors. 36.8% of Gold Fields shares are held by company insiders. Comparatively, 0.0% of Platinum Group Metals shares are held 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.

Profitability

This table compares Gold Fields and Platinum Group Metals’ 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
Platinum Group Metals	N/A	-10.13%	-9.69%

Analyst Recommendations

This is a breakdown of current recommendations for Gold Fields and Platinum Group Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Fields	0	4	2	0	2.33
Platinum Group Metals	0	0	0	0	0.00

Gold Fields presently has a consensus price target of $16.45, suggesting a potential downside of 14.37%. Given Gold Fields’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Gold Fields is more favorable than Platinum Group Metals.

Risk and Volatility

Gold Fields has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Valuation and Earnings

This table compares Gold Fields and Platinum Group Metals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Fields	$4.50 billion	3.82	$703.30 million	N/A	N/A
Platinum Group Metals	N/A	N/A	-$4.61 million	($0.06)	-22.83

Gold Fields has higher revenue and earnings than Platinum Group Metals.

Summary

Gold Fields beats Platinum Group Metals on 9 of the 10 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 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.