Reviewing DRDGOLD (NYSE:DRD) & The Competition

DRDGOLD (NYSE: DRD) is one of 61 publicly-traded companies in the “Gold Mining” industry, but how does it weigh in compared to its rivals? We will compare DRDGOLD to related companies based on the strength of its dividends, institutional ownership, profitability, earnings, analyst recommendations, risk and valuation.

Valuation and Earnings

This table compares DRDGOLD and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DRDGOLD $172.22 million $1.00 million N/A
DRDGOLD Competitors $2.41 billion -$32.21 million 179.58

DRDGOLD’s rivals have higher revenue, but lower earnings than DRDGOLD.

Volatility & Risk

DRDGOLD has a beta of -1.98, indicating that its share price is 298% less volatile than the S&P 500. Comparatively, DRDGOLD’s rivals have a beta of -0.14, indicating that their average share price is 114% less volatile than the S&P 500.

Insider and Institutional Ownership

18.5% of DRDGOLD shares are owned by institutional investors. Comparatively, 44.1% of shares of all “Gold Mining” companies are owned by institutional investors. 1.0% of DRDGOLD shares are owned by company insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares DRDGOLD and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DRDGOLD N/A N/A N/A
DRDGOLD Competitors -2,889.52% 39.94% -2.77%

Analyst Recommendations

This is a summary of recent recommendations and price targets for DRDGOLD and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DRDGOLD 0 0 0 0 N/A
DRDGOLD Competitors 473 1845 2162 50 2.39

As a group, “Gold Mining” companies have a potential upside of 38.06%. Given DRDGOLD’s rivals higher possible upside, analysts clearly believe DRDGOLD has less favorable growth aspects than its rivals.

Dividends

DRDGOLD pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. As a group, “Gold Mining” companies pay a dividend yield of 1.0% and pay out 57.1% of their earnings in the form of a dividend. DRDGOLD has increased its dividend for 4 consecutive years.

Summary

DRDGOLD rivals beat DRDGOLD on 7 of the 11 factors compared.

DRDGOLD Company Profile

DRDGOLD Limited is a gold mining company. The Company is engaged in gold production by tailings retreatment. The Company is focused on the recovery of lower-risk, higher-margin ounces primarily from its metallurgical plant located approximately 50 kilometers east of Johannesburg in Brakpan. The Company owns approximately 100% of its holding company, Ergo Mining Operations Proprietary Limited (EMO). Ergo Mining Proprietary Limited (Ergo) is owned by EMO. Ergo has a vast footprint adjacent to Johannesburg on the central and eastern Witwatersrand of South Africa. Its assets cover an area of approximately 62 kilometers from east to west and over 25 kilometers from north to south. The Ergo operation has over two metallurgical plants in operation, including Knights plant and The Ergo plant. The Knights plant in Germiston is treating the Cason dump and depositing waste on the Brakpan tailings facility (BTF). The Ergo plant has a total treatment capacity of 300,000 tons per month (tpm).

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