Sibanye Gold (NYSE: SBGL) and Paramount Gold Nevada Corp (NYSE:PZG) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Sibanye Gold and Paramount Gold Nevada Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sibanye Gold 19.25% 43.10% 17.03%
Paramount Gold Nevada Corp -599.29% -11.32% -10.95%

Institutional & Insider Ownership

14.1% of Sibanye Gold shares are held by institutional investors. 0.1% of Sibanye Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sibanye Gold and Paramount Gold Nevada Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sibanye Gold 1 2 1 0 2.00
Paramount Gold Nevada Corp 0 0 1 0 3.00

Paramount Gold Nevada Corp has a consensus target price of $2.00, suggesting a potential upside of 38.99%. Given Paramount Gold Nevada Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Paramount Gold Nevada Corp is more favorable than Sibanye Gold.

Dividends

Sibanye Gold pays an annual dividend of $0.32 per share and has a dividend yield of 5.4%. Paramount Gold Nevada Corp does not pay a dividend.

Valuation and Earnings

This table compares Sibanye Gold and Paramount Gold Nevada Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sibanye Gold $2.36 billion 0.58 $756.58 million N/A N/A
Paramount Gold Nevada Corp N/A N/A -$4.75 million N/A N/A

Sibanye Gold has higher revenue and earnings than Paramount Gold Nevada Corp.

Summary

Sibanye Gold beats Paramount Gold Nevada Corp on 8 of the 10 factors compared between the two stocks.

Sibanye Gold 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.

Paramount Gold Nevada Corp Company Profile

Paramount Gold Nevada Corp. is an exploration-stage mining company. The Company is engaged in the business of acquiring, exploring and developing precious metal projects in the United States. Its principal Nevada interest, the Sleeper Gold Project, is located in Humboldt County, Nevada. Its project located in Oregon, known as the Grassy Mountain Project, is situated in Malheur County, Oregon. As of June 30, 2016, the Company owned additional mining claims in the State of Nevada, including the Mill Creek property, which had 36 unpatented lode mining claims in Lander County, and the Spring Valley property, which had 38 lode mining claims in Pershing County. Its subsidiaries, New Sleeper Gold LLC and Sleeper Mining Company, LLC, operate its mining interests in Nevada. Its subsidiaries, Calico Resources Corp. and Calico Resources USA Corp., hold its interest in the Grassy Mountain Project in Oregon. As of June 30, 2016, the Company had not generated any revenues from operations.

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