Sibanye Gold Limited (NYSE: SBGL) and Randgold Resources Limited (NASDAQ:GOLD) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Valuation and Earnings

This table compares Sibanye Gold Limited and Randgold Resources Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sibanye Gold Limited $2.35 billion 0.63 $754.77 million N/A N/A
Randgold Resources Limited N/A N/A N/A $3.13 32.74

Sibanye Gold Limited has higher revenue and earnings than Randgold Resources Limited.

Insider & Institutional Ownership

35.8% of Sibanye Gold Limited shares are owned by institutional investors. Comparatively, 35.6% of Randgold Resources Limited shares are owned by institutional investors. 0.1% of Sibanye Gold Limited shares 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.

Dividends

Sibanye Gold Limited pays an annual dividend of $0.32 per share and has a dividend yield of 5.0%. Randgold Resources Limited pays an annual dividend of $0.98 per share and has a dividend yield of 1.0%. Randgold Resources Limited pays out 31.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Sibanye Gold Limited and Randgold Resources Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sibanye Gold Limited 1 2 1 0 2.00
Randgold Resources Limited 1 7 6 0 2.36

Randgold Resources Limited has a consensus price target of $102.33, suggesting a potential downside of 0.15%. Given Randgold Resources Limited’s stronger consensus rating and higher probable upside, analysts clearly believe Randgold Resources Limited is more favorable than Sibanye Gold Limited.

Volatility and Risk

Sibanye Gold Limited has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500. Comparatively, Randgold Resources Limited has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.

Profitability

This table compares Sibanye Gold Limited and Randgold Resources Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sibanye Gold Limited N/A N/A N/A
Randgold Resources Limited 22.75% 7.89% 7.33%

Summary

Randgold Resources Limited beats Sibanye Gold Limited on 7 of the 12 factors compared between the two stocks.

Sibanye Gold Limited Company Profile

Sibanye Gold Limited (Sibanye) is a South Africa-based mining company. The Company owns and operates gold and uranium operations, and projects throughout the Witwatersrand Basin. Its segments include Driefontein, Kloof, Beatrix, Cooke and Corporate. The Company owns and operates four underground and surface gold operations: the Cooke, Driefontein and Kloof operations in the West Witwatersrand region, and the Beatrix operation in the southern Free State province. In addition to its mining activities, Sibanye owns and manages extraction and processing facilities at the operations where the gold-bearing ore is treated. The Company has various organic projects, including the Kloof and Driefontein below infrastructure projects on the West Rand and the Burnstone project on the South Rand of Gauteng province. Sibanye mines, extracts and processes gold ore to produce a product, dore. Sibanye derives uranium ore as a by-product of gold production from the Cooke operation.

Randgold Resources Limited Company Profile

Randgold Resources Limited is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. As of December 31, 2016, Morila mine has produced 122,370 ounces (oz) of gold. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. As of December 31, 2016, Loulo mine has produced 350,604 oz of gold. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA.

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