Financial Comparison: Gold Fields (NYSE:GFI) versus Solgold (OTCMKTS:SLGGF)

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

Profitability

This table compares Gold Fields and Solgold’s 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
Solgold	N/A	-26.92%	-12.63%

Insider and Institutional Ownership

24.8% of Gold Fields shares are held by institutional investors. 36.8% of Gold Fields shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Gold Fields has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Solgold has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Gold Fields and Solgold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Fields	1	6	4	0	2.27
Solgold	0	0	0	0	0.00

Gold Fields currently has a consensus target price of $47.14, suggesting a potential downside of 5.61%. Given Gold Fields’ stronger consensus rating and higher probable upside, research analysts clearly believe Gold Fields is more favorable than Solgold.

Earnings and Valuation

This table compares Gold Fields and Solgold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Fields	$8.75 billion	5.11	$3.57 billion	N/A	N/A
Solgold	N/A	N/A	-$36.25 million	($0.01)	-37.40

Gold Fields has higher revenue and earnings than Solgold.

Summary

Gold Fields beats Solgold 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 Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.