Sibanye Gold (NYSE: SBGL) and Richmont Mines (NYSE:RIC) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
This table compares Sibanye Gold and Richmont Mines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings for Sibanye Gold and Richmont Mines, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Richmont Mines has a consensus price target of $12.33, indicating a potential upside of 28.44%. Given Richmont Mines’ stronger consensus rating and higher possible upside, analysts clearly believe Richmont Mines is more favorable than Sibanye Gold.
Institutional & Insider Ownership
36.6% of Sibanye Gold shares are owned by institutional investors. Comparatively, 53.8% of Richmont Mines shares are owned by institutional investors. 0.1% of Sibanye Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Sibanye Gold and Richmont Mines’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sibanye Gold||$2.13 billion||0.54||$252.44 million||N/A||N/A|
|Richmont Mines||$127.39 million||4.81||$9.41 million||$0.27||35.56|
Sibanye Gold has higher revenue and earnings than Richmont Mines.
Sibanye Gold pays an annual dividend of $0.14 per share and has a dividend yield of 2.9%. Richmont Mines does not pay a dividend.
Richmont Mines beats Sibanye Gold on 8 of the 12 factors compared between the two stocks.
About Sibanye Gold
Sibanye Gold Limited is an independent, global precious metal mining company. The Company is engaged in producing a mix of metals that includes gold and the platinum group metals (PGMs). Its projects are grouped by two regions: the Southern Africa region and the Americas region. Its products include gold, platinum group metals and by-products. The Company’s gold project in the Southern Africa region includes Beatrix, Cooke, Driefontein, and Kloof. Its PGM projects include Kroondal, Rustenburg operations, Mimosa, and Platinum Mile. Its other projects in the Southern Africa region include Burnstone, Kloof Decline, Driefontein decline, The West Rand Tailings Retreatment Project (WRTRP) and The Southern Free State (SOFS) project. The Company’s PGM project in the Americas region includes East Boulder, Stillwater, and Columbus Metallurgical Complex. Its other projects in the Americas region include Blitz, Altar and Marathon.
About Richmont Mines
Richmont Mines Inc, formerly Ressources Minieres Rouyn Inc, is a Canada-based mining company. The Company is engaged in the mining, exploration and development of mining properties, principally gold. The Company operates gold mines at various sites in Quebec and Ontario. The Company’s segments include Quebec and Ontario. The Company is engaged in the production of gold from the Island Gold Mine in Ontario and the Beaufor Mine in Quebec. The Island Gold mine is located approximately 80 kilometers northeast of Wawa, Ontario. It is part of the Island Gold Project, which is divided into more than eight parts (properties) comprising approximately 200 patented, leased and staked claims covering approximately 8,000 hectares, mainly within the townships of Finan and Jacobson. The Island Gold Project is located in the Michipicoten Greenstone Belt. The Beaufor Mine is located approximately 20 kilometers northeast of Val-d’Or, Quebec.
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