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

Analyst Ratings

This is a summary of recent ratings and price targets for Sibanye Gold Limited and Paramount Gold Nevada Corp, as provided by MarketBeat.

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

Paramount Gold Nevada Corp has a consensus price target of $2.00, indicating a potential upside of 30.72%. Given Paramount Gold Nevada Corp’s stronger consensus rating and higher probable upside, analysts clearly believe Paramount Gold Nevada 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 5.0%. Paramount Gold Nevada Corp does not pay a dividend.

Earnings & Valuation

This table compares Sibanye Gold Limited and Paramount Gold Nevada Corp’s revenue, earnings per share 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
Paramount Gold Nevada Corp N/A N/A -$4.75 million N/A N/A

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

Profitability

This table compares Sibanye Gold Limited 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 Limited N/A N/A N/A
Paramount Gold Nevada Corp -599.29% -11.32% -10.95%

Institutional & Insider Ownership

35.8% of Sibanye Gold Limited shares are held by institutional investors. 0.1% of Sibanye Gold Limited shares are held by company 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.

Summary

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

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.

About Paramount Gold Nevada Corp

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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