Head-To-Head Survey: Gatos Silver (NYSE:GATO) vs. Harmony Gold Mining (NYSE:HMY)

Gatos Silver (NYSE:GATO) and Harmony Gold Mining (NYSE:HMY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gatos Silver and Harmony Gold Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gatos Silver	0	3	1	0	2.25
Harmony Gold Mining	2	1	0	0	1.33

Gatos Silver currently has a consensus price target of $6.75, suggesting a potential downside of 30.05%. Harmony Gold Mining has a consensus price target of $3.40, suggesting a potential downside of 61.65%. Given Gatos Silver’s stronger consensus rating and higher probable upside, analysts clearly believe Gatos Silver is more favorable than Harmony Gold Mining.

Risk and Volatility

Gatos Silver has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500. Comparatively, Harmony Gold Mining has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Earnings and Valuation

This table compares Gatos Silver and Harmony Gold Mining’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gatos Silver	N/A	N/A	$12.86 million	$0.19	50.79
Harmony Gold Mining	$2.78 billion	2.02	$271.85 million	N/A	N/A

Harmony Gold Mining has higher revenue and earnings than Gatos Silver.

Profitability

This table compares Gatos Silver and Harmony Gold Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gatos Silver	N/A	3.63%	3.33%
Harmony Gold Mining	N/A	N/A	N/A

Institutional & Insider Ownership

44.8% of Gatos Silver shares are held by institutional investors. Comparatively, 31.8% of Harmony Gold Mining shares are held by institutional investors. 1.5% of Gatos Silver shares are held by company insiders. Comparatively, 16.0% of Harmony Gold Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Gatos Silver beats Harmony Gold Mining on 7 of the 10 factors compared between the two stocks.

About Gatos Silver

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 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.