Financial Analysis: Pershing Gold (PGLC) and The Competition

Pershing Gold (NASDAQ: PGLC) is one of 61 public companies in the “Gold Mining” industry, but how does it compare to its competitors? We will compare Pershing Gold to similar companies based on the strength of its analyst recommendations, earnings, profitability, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for Pershing Gold and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pershing Gold 0 0 3 0 3.00
Pershing Gold Competitors 471 1831 2140 49 2.39

Pershing Gold presently has a consensus price target of $8.00, indicating a potential upside of 177.78%. As a group, “Gold Mining” companies have a potential upside of 51.62%. Given Pershing Gold’s stronger consensus rating and higher possible upside, analysts plainly believe Pershing Gold is more favorable than its competitors.

Valuation & Earnings

This table compares Pershing Gold and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pershing Gold N/A -$15.63 million -5.33
Pershing Gold Competitors $2.41 billion -$32.21 million 172.16

Pershing Gold’s competitors have higher revenue, but lower earnings than Pershing Gold. Pershing Gold is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Pershing Gold and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pershing Gold N/A -41.82% -39.57%
Pershing Gold Competitors -2,998.75% -8.66% -3.99%

Volatility and Risk

Pershing Gold has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Pershing Gold’s competitors have a beta of -0.14, indicating that their average share price is 114% less volatile than the S&P 500.

Institutional and Insider Ownership

19.6% of Pershing Gold shares are owned by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are owned by institutional investors. 36.8% of Pershing Gold 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Pershing Gold beats its competitors on 7 of the 12 factors compared.

About Pershing Gold

Pershing Gold Corporation is a gold and precious metals exploration company. The Company focuses on exploration, development and mining opportunities in Nevada. The Company is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. The Company operates its business directly and also through its subsidiary, Gold Acquisition Corp. Gold Acquisition Corp. owns and is engaged in conducting exploration on the Relief Canyon Mine property in northwestern Nevada. The Company is engaged in conducting exploration on the Relief Canyon expansion properties. The Relief Canyon Mine includes approximately three open pit mines, heap leach pads consisting of approximately six cells, approximately two solution ponds and a cement block constructed adsorption desorption-recovery (ADR) solution processing circuit. The Pershing Pass property includes approximately 490 lode mining claims. The Company has not generated any revenues.

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