Harmony Gold Mining (NYSE:HMY) vs. Gatos Silver (NYSE:GATO) Head to Head Contrast

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

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of recent ratings and price targets for Harmony Gold Mining and Gatos Silver, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Gold Mining	2	2	0	0	1.50
Gatos Silver	0	3	1	0	2.25

Harmony Gold Mining currently has a consensus target price of $3.40, suggesting a potential downside of 62.68%. Gatos Silver has a consensus target price of $6.75, suggesting a potential downside of 31.12%. Given Gatos Silver’s stronger consensus rating and higher possible upside, analysts plainly believe Gatos Silver is more favorable than Harmony Gold Mining.

Volatility and Risk

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

Valuation & Earnings

This table compares Harmony Gold Mining and Gatos Silver’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Gold Mining	$57.43 billion	0.10	$271.85 million	N/A	N/A
Gatos Silver	N/A	N/A	$12.86 million	$0.19	51.58

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

Profitability

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

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

Summary

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

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.

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.