Sibanye Gold (NYSE:SBSW) and Fortescue (OTCMKTS:FSUGY) Head-To-Head Analysis

Fortescue (OTCMKTS:FSUGY) and Sibanye Gold (NYSE:SBSW) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Risk and Volatility

Fortescue has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Sibanye Gold has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fortescue and Sibanye Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortescue	1	2	0	1	2.25
Sibanye Gold	1	2	1	0	2.00

Sibanye Gold has a consensus price target of $6.90, indicating a potential downside of 45.57%. Given Sibanye Gold’s higher probable upside, analysts plainly believe Sibanye Gold is more favorable than Fortescue.

Dividends

Fortescue pays an annual dividend of $1.53 per share and has a dividend yield of 5.2%. Sibanye Gold pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%.

Insider & Institutional Ownership

34.9% of Sibanye Gold shares are held by institutional investors. 0.1% of Sibanye Gold shares are held by company 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 Fortescue and Sibanye Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortescue	$15.54 billion	2.93	$3.37 billion	N/A	N/A
Sibanye Gold	$111.69 billion	0.08	-$398.42 million	N/A	N/A

Fortescue has higher earnings, but lower revenue than Sibanye Gold.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fortescue	N/A	N/A	N/A
Sibanye Gold	N/A	N/A	N/A

Summary

Fortescue beats Sibanye Gold on 6 of the 11 factors compared between the two stocks.

About Fortescue

Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.

About Sibanye Gold

Sibanye Stillwater Limited, together with its subsidiaries, operates as a precious metals mining company in South Africa, the United States, Europe, and Australia. The company produces gold; platinum group metals (PGMs), including palladium, platinum, rhodium, iridium, and ruthenium; chrome; nickel; and silver, cobalt, and copper. It owns the East Boulder and Stillwater mines located in Montana, the United States; and Columbus metallurgical complex, which smelts the material mined to produce PGM-rich filter cake, as well as conducts PGM recycling activities. The company also involved in the Kroondal, Rustenburg, Marikana, and Platinum Mile operations situated in South Africa; Mimosa located on the southern portion in Zimbabwe; the Driefontein, Kloof, Rand Refinery, and Cooke surface operations located on the West Rand of the Witwatersrand Basin; and the Beatrix situated in the southern Free State. In addition, it owns an interest in surface tailings retreatment facilities; the Marathon PGM project in Ontario, Canada; the Altar and Rio Grande copper gold projects in the Andes in north-west Argentina; the Hoedspruit; and the Burnstone and southern Free State gold projects in South Africa. Sibanye Stillwater Limited was founded in 2013 and is headquartered in Weltevreden Park, South Africa.