Seabridge Gold (NYSE:SA) vs. BHP Billiton PLC (BBL) Critical Analysis
Seabridge Gold (NYSE: SA) and BHP Billiton PLC (NYSE:BBL) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitabiliy and analyst recommendations.
BHP Billiton PLC pays an annual dividend of $1.08 per share and has a dividend yield of 3.0%. Seabridge Gold does not pay a dividend.
Earnings and Valuation
This table compares Seabridge Gold and BHP Billiton PLC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seabridge Gold||N/A||N/A||-$8.44 million||($0.09)||-128.89|
|BHP Billiton PLC||$34.69 billion||2.75||$15.52 billion||N/A||N/A|
BHP Billiton PLC has higher revenue and earnings than Seabridge Gold.
Insider and Institutional Ownership
27.4% of Seabridge Gold shares are held by institutional investors. Comparatively, 4.4% of BHP Billiton PLC shares are held by institutional investors. 12.8% of Seabridge Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Seabridge Gold and BHP Billiton PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BHP Billiton PLC||N/A||N/A||N/A|
This is a summary of recent ratings and target prices for Seabridge Gold and BHP Billiton PLC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BHP Billiton PLC||1||5||1||0||2.00|
BHP Billiton PLC has a consensus target price of $32.00, suggesting a potential downside of 10.84%. Given BHP Billiton PLC’s higher possible upside, analysts clearly believe BHP Billiton PLC is more favorable than Seabridge Gold.
Volatility & Risk
Seabridge Gold has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500. Comparatively, BHP Billiton PLC has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
BHP Billiton PLC beats Seabridge Gold on 8 of the 10 factors compared between the two stocks.
About Seabridge Gold
Seabridge Gold Inc. (Seabridge) is a development-stage company. The Company is engaged in the acquisition and exploration of gold properties located in North America. As of December 31, 2016, the Company owned six properties with gold resources. Its material properties are its Kerr-Sulphurets-Mitchell (KSM) Project and its Courageous Lake Project. Its KSM Project is located within the Iskut-Stikine region of British Columbia, approximately 21 kilometers south-southeast of the former Eskay Creek Mine and approximately 65 kilometers north-northwest of Stewart, British Columbia. As of December 31, 2016, the KSM property consisted of three discontinuous claim blocks. These claim blocks are referred to as the KSM claim group; the Seabee/Tina claims, and the KSM placer claim block. As of December 31, 2016, the two claim blocks (KSM and Seabee/Tina) contained two mineral leases and 73 mineral claims, consisting of both cell and legacy claims.
About BHP Billiton PLC
BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.
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