Head to Head Review: AngloGold Ashanti (AU) vs. Its Peers

AngloGold Ashanti (NYSE:AU) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it weigh in compared to its peers? We will compare AngloGold Ashanti to similar businesses based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, risk and institutional ownership.

Risk & Volatility

AngloGold Ashanti has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, AngloGold Ashanti’s peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares AngloGold Ashanti and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AngloGold Ashanti	$12.03 billion	$2.64 billion	12.09
AngloGold Ashanti Competitors	$5.23 billion	$278.94 million	-26.23

AngloGold Ashanti has higher revenue and earnings than its peers. AngloGold Ashanti is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

AngloGold Ashanti pays an annual dividend of $0.50 per share and has a dividend yield of 0.5%. AngloGold Ashanti pays out 6.5% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.1% and pay out 10.8% of their earnings in the form of a dividend.

Insider & Institutional Ownership

36.1% of AngloGold Ashanti shares are owned by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.7% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AngloGold Ashanti and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AngloGold Ashanti	32.63%	39.17%	26.23%
AngloGold Ashanti Competitors	-1,164,884,689,320,590,400.00%	-52.92%	-2.03%

Analyst Recommendations

This is a summary of current ratings and price targets for AngloGold Ashanti and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AngloGold Ashanti	0	3	8	3	3.00
AngloGold Ashanti Competitors	6406	22609	32308	1801	2.47

AngloGold Ashanti presently has a consensus target price of $118.35, indicating a potential upside of 27.31%. As a group, “Metals & Mining” companies have a potential upside of 25.21%. Given AngloGold Ashanti’s stronger consensus rating and higher probable upside, equities analysts plainly believe AngloGold Ashanti is more favorable than its peers.

Summary

AngloGold Ashanti beats its peers on 12 of the 15 factors compared.

About AngloGold Ashanti

AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.