Head-To-Head Contrast: NexGen Energy (NYSE:NXE) versus Sibanye Gold (NYSE:SBSW)

Sibanye Gold (NYSE:SBSW) and NexGen Energy (NYSE:NXE) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Volatility and Risk

Sibanye Gold has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, NexGen Energy has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sibanye Gold and NexGen Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sibanye Gold	$7.25 billion	0.87	-$289.58 million	N/A	N/A
NexGen Energy	N/A	N/A	-$221.63 million	($0.49)	-19.66

NexGen Energy has lower revenue, but higher earnings than Sibanye Gold.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sibanye Gold	N/A	N/A	N/A
NexGen Energy	N/A	-13.11%	-8.91%

Insider & Institutional Ownership

34.9% of Sibanye Gold shares are held by institutional investors. Comparatively, 42.4% of NexGen Energy shares are held by institutional investors. 0.1% of Sibanye Gold shares are held by company insiders. Comparatively, 5.6% of NexGen Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sibanye Gold and NexGen Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sibanye Gold	1	2	2	0	2.20
NexGen Energy	1	1	4	0	2.50

Sibanye Gold currently has a consensus price target of $19.93, indicating a potential upside of 122.94%. Given Sibanye Gold’s higher possible upside, analysts clearly believe Sibanye Gold is more favorable than NexGen Energy.

Summary

NexGen Energy beats Sibanye Gold on 6 of the 10 factors compared between the two stocks.

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.

About NexGen Energy

NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.