Glencore (OTCMKTS:GLNCY – Get Free Report) and Sibanye Gold (NYSE:SBSW – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Valuation and Earnings
This table compares Glencore and Sibanye Gold”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Glencore | $247.54 billion | 0.38 | $363.00 million | N/A | N/A |
| Sibanye Gold | $7.25 billion | 1.28 | -$289.58 million | N/A | N/A |
Analyst Recommendations
This is a summary of current ratings for Glencore and Sibanye Gold, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Glencore | 0 | 3 | 6 | 2 | 2.91 |
| Sibanye Gold | 1 | 2 | 2 | 0 | 2.20 |
Glencore currently has a consensus target price of $9.30, suggesting a potential downside of 41.58%. Sibanye Gold has a consensus target price of $19.93, suggesting a potential upside of 51.65%. Given Sibanye Gold’s higher possible upside, analysts clearly believe Sibanye Gold is more favorable than Glencore.
Insider & Institutional Ownership
0.1% of Glencore shares are owned by institutional investors. Comparatively, 34.9% of Sibanye Gold shares are owned by institutional investors. 0.1% of Sibanye Gold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Glencore has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Sibanye Gold has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
Profitability
This table compares Glencore and Sibanye Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Glencore | N/A | N/A | N/A |
| Sibanye Gold | N/A | N/A | N/A |
Dividends
Glencore pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%. Sibanye Gold pays an annual dividend of $0.25 per share and has a dividend yield of 1.9%.
Summary
Sibanye Gold beats Glencore on 6 of the 11 factors compared between the two stocks.
About Glencore
Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments: Marketing Activities and Industrial Activities. The company engages in production and marketing copper, cobalt, lead, nickel, zinc, chrome ore, ferrochrome, vanadium, aluminum, alumina, and iron ore; and coal, crude oil, refined products, and natural gas, as well as oil exploration/production and refining/distribution. It also operates marketing and distribution of physical commodities sourced from third party producers and company’s production to industrial consumers, including the battery, electronic, construction, automotive, steel, energy, and oil industries. In addition, the company provides financing, logistics, and other services to producers and consumers of commodities. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.
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.
Receive News & Ratings for Glencore Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Glencore and related companies with MarketBeat.com's FREE daily email newsletter.
