Head-To-Head Analysis: Harmony Gold Mining (NYSE:HMY) and Skeena Resources (NYSE:SKE)

Harmony Gold Mining (NYSE:HMY) and Skeena Resources (NYSE:SKE) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Volatility and Risk

Harmony Gold Mining has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Skeena Resources has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Profitability

This table compares Harmony Gold Mining and Skeena Resources’ 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
Skeena Resources	N/A	-100.68%	-67.90%

Earnings & Valuation

This table compares Harmony Gold Mining and Skeena Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Gold Mining	$61.38 billion	0.10	$459.40 million	$1.17	8.42
Skeena Resources	N/A	N/A	-$80.73 million	($1.02)	-8.33

Harmony Gold Mining has higher revenue and earnings than Skeena Resources. Skeena Resources is trading at a lower price-to-earnings ratio than Harmony Gold Mining, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Harmony Gold Mining and Skeena Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Gold Mining	3	0	0	0	1.00
Skeena Resources	0	0	1	0	3.00

Harmony Gold Mining currently has a consensus target price of $4.80, suggesting a potential downside of 51.27%. Skeena Resources has a consensus target price of $18.00, suggesting a potential upside of 111.76%. Given Skeena Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Skeena Resources is more favorable than Harmony Gold Mining.

Insider and Institutional Ownership

31.8% of Harmony Gold Mining shares are held by institutional investors. Comparatively, 45.2% of Skeena Resources shares are held by institutional investors. 16.0% of Harmony Gold Mining shares are held by company insiders. Comparatively, 2.0% of Skeena Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Harmony Gold Mining beats Skeena Resources on 8 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. 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 Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is based in Vancouver, Canada.