Critical Analysis: Pan African Resources (PAFRF) and The Competition

Pan African Resources (OTCMKTS:PAFRF) is one of 1,988 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Pan African Resources to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, dividends, earnings, profitability and valuation.

Profitability

This table compares Pan African Resources and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pan African Resources	N/A	N/A	N/A
Pan African Resources Competitors	-1,158,604,987,491,368,400.00%	-14.40%	-2.05%

Dividends

Pan African Resources pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Pan African Resources pays out 55.0% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.5% and pay out 10.6% of their earnings in the form of a dividend. Pan African Resources lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Pan African Resources and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pan African Resources	N/A	N/A	102.74
Pan African Resources Competitors	$169.70 billion	$272.63 million	-25.05

Pan African Resources’ rivals have higher revenue and earnings than Pan African Resources. Pan African Resources is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

22.9% of Pan African Resources shares are owned by institutional investors. Comparatively, 16.0% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pan African Resources and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pan African Resources	0	1	0	0	2.00
Pan African Resources Competitors	6310	22378	31992	1762	2.47

As a group, “Metals & Mining” companies have a potential upside of 15.03%. Given Pan African Resources’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Pan African Resources has less favorable growth aspects than its rivals.

Summary

Pan African Resources rivals beat Pan African Resources on 8 of the 13 factors compared.

About Pan African Resources

Pan African Resources PLC engages in the mining, extraction, production, and sale of gold in South Africa. The company’s flagship projects include the Barberton Mines that consists of three underground mines, including Fairview, Sheba, and Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa. Pan African Resources PLC is headquartered in Johannesburg, South Africa.