Sibanye Gold Limited (NYSE: SBGL) and Primero Mining Corp (NYSE:PPP) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.
Volatility & Risk
Sibanye Gold Limited has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Primero Mining Corp has a beta of -0.4, suggesting that its stock price is 140% less volatile than the S&P 500.
Valuation and Earnings
This table compares Sibanye Gold Limited and Primero Mining Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sibanye Gold Limited||$2.36 billion||0.58||$756.58 million||N/A||N/A|
|Primero Mining Corp||$206.32 million||0.18||$31.53 million||($2.39)||-0.08|
Sibanye Gold Limited has higher revenue and earnings than Primero Mining Corp.
This table compares Sibanye Gold Limited and Primero Mining 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|
|Primero Mining Corp||-299.62%||-2.41%||-1.67%|
This is a summary of recent ratings for Sibanye Gold Limited and Primero Mining Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sibanye Gold Limited||1||2||1||0||2.00|
|Primero Mining Corp||1||2||1||0||2.00|
Primero Mining Corp has a consensus target price of $2.25, suggesting a potential upside of 1,084.21%. Given Primero Mining Corp’s higher probable upside, analysts clearly believe Primero Mining Corp is more favorable than Sibanye Gold Limited.
Institutional and Insider Ownership
14.1% of Sibanye Gold Limited shares are owned by institutional investors. Comparatively, 43.8% of Primero Mining Corp shares are owned by institutional investors. 0.1% of Sibanye Gold Limited shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Sibanye Gold Limited pays an annual dividend of $0.32 per share and has a dividend yield of 5.4%. Primero Mining Corp does not pay a dividend.
Sibanye Gold Limited beats Primero Mining Corp on 9 of the 11 factors compared between the two stocks.
Sibanye Gold Limited Company Profile
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.
Primero Mining Corp Company Profile
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.
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