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

Earnings & Valuation

This table compares Primero Mining Corp and Sibanye Gold Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Primero Mining Corp $177.87 million 0.17 $57.50 million ($2.39) -0.07
Sibanye Gold Limited $2.36 billion 0.55 $756.58 million N/A N/A

Sibanye Gold Limited has higher revenue and earnings than Primero Mining Corp.

Analyst Ratings

This is a breakdown of current ratings and price targets for Primero Mining Corp and Sibanye Gold Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primero Mining Corp 1 2 1 0 2.00
Sibanye Gold Limited 1 2 1 0 2.00

Primero Mining Corp currently has a consensus price target of $2.25, suggesting a potential upside of 1,332.21%. Given Primero Mining Corp’s higher possible upside, equities research analysts plainly believe Primero Mining Corp is more favorable than Sibanye Gold Limited.

Dividends

Sibanye Gold Limited pays an annual dividend of $0.32 per share and has a dividend yield of 5.7%. Primero Mining Corp does not pay a dividend.

Volatility and Risk

Primero Mining Corp has a beta of -0.4, meaning that its stock price is 140% less volatile than the S&P 500. Comparatively, Sibanye Gold Limited has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500.

Profitability

This table compares Primero Mining Corp and Sibanye Gold Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primero Mining Corp -299.62% -2.89% -1.90%
Sibanye Gold Limited N/A N/A N/A

Insider & Institutional Ownership

42.0% of Primero Mining Corp shares are held by institutional investors. Comparatively, 14.2% of Sibanye Gold Limited shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Sibanye Gold Limited beats Primero Mining Corp on 8 of the 10 factors compared between the two stocks.

About Primero Mining Corp

Primero Mining Corp. is a precious metals producer with operations in both Mexico and Canada. The Company is focused on building a portfolio of precious metals assets in the Americas through acquiring, exploring, developing and operating mineral resource properties. Its segments include San Dimas, Cerro del Gallo, Black Fox Complex and Corporate. It owns over two producing properties, including the San Dimas gold-silver mine, located in Mexico’s San Dimas district, and the Black Fox mine, located in the Township of Black River-Matheson, Ontario, Canada. It owns properties adjacent to the Black Fox mine, Grey Fox and Pike River, which together with the Black Fox mine and the Black Fox mill, located on the Stock Mill property, comprise the Black Fox Complex. It also owns over two exploration properties, including the Cerro del Gallo gold-silver-copper project, which is located in the state of Guanajuato in central Mexico, and Ventanas, which is located in Durango State, Mexico.

About Sibanye Gold Limited

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.

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