Copper Mountain Mining (OTCMKTS:CPPMF) versus Harmony Gold Mining (NYSE:HMY) Critical Analysis

Harmony Gold Mining (NYSE:HMY) and Copper Mountain Mining (OTCMKTS:CPPMF) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

25.5% of Harmony Gold Mining shares are held by institutional investors. 16.0% of Harmony Gold Mining shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Harmony Gold Mining and Copper Mountain Mining’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
Copper Mountain Mining 24.83% 16.38% 6.97%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harmony Gold Mining $2.02 billion 1.43 -$56.54 million ($0.10) -46.70
Copper Mountain Mining $255.12 million 2.74 $37.52 million N/A N/A

Copper Mountain Mining has lower revenue, but higher earnings than Harmony Gold Mining.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harmony Gold Mining 1 1 0 0 1.50
Copper Mountain Mining 0 2 4 0 2.67

Copper Mountain Mining has a consensus price target of $4.50, indicating a potential upside of 35.06%. Given Copper Mountain Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Copper Mountain Mining is more favorable than Harmony Gold Mining.

Summary

Copper Mountain Mining beats Harmony Gold Mining on 9 of the 12 factors compared between the two stocks.

About Harmony Gold Mining

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold in South Africa and Papua New Guinea. The company also explores for uranium, silver, and copper deposits. The company has nine underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface treatment operations in South Africa. It also owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu, a project in Morobe Province in Papua New Guinea. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.

About Copper Mountain Mining

Copper Mountain Mining Corporation operates as a mining company in Canada. The company explores for copper, gold, and silver deposits. Its flagship asset is the Copper Mountain mine that comprise 138 crown granted mineral claims, 149 located mineral claims, 14 mining leases, and 12 fee simple properties covering an area of 6,702 hectares located to the south of Princeton, British Columbia. The company was founded in 2006 and is headquartered in Vancouver, Canada.

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