The gold rush was undoubtedly one of the most hyped discoveries in the United States. This can be attributed to the fact that anyone who proved to be lucky enough to strike gold would instantly turn into an extremely wealthy individual if not a millionaire of sorts. Today however, the hype has already passed its peak and only a handful of corporations involved in gold mining are doing well as each of try to compete for mining rights to different sites around the globe.
Goldcorp (GG) is among the major mining corporations that have been able to hold their own against major rivals such as Harmony Gold Mining (HMY), Barrick Gold (ABX), Kinross Gold (KGC) and Newmont Mining (NEM). Founded in the early 1950s Goldcorp has been able to grow into one of the largest gold mining and exploration firms in the United States, accumulating assets in the excess of $21 billion. Goldcorp currently enjoys a market capitalization of about $34 billion coming second to its main rival Barrick Gold, which has a $40 billion market cap. Barrick Gold has been the major source of competition for Goldcorp although the expected growth for the next five years for the two tells of a different story.
Whereas Goldcorp has a PEG of about 2, Barrick Gold is at about 0.2 – meaning that analysts expect Goldcorp to overshadow its main rival. For investors who are keen on the slightest details, it can be seen from Goldcorp’s operating margin, which is about 45%, that it still needs more work on it compared with Barrick Gold’s, which is at 48%.To continue reading, click here.