Paramount Gold Nevada Corp (NYSE: PZG) and Sibanye Gold Limited (NYSE:SBGL) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Paramount Gold Nevada Corp and Sibanye Gold Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Gold Nevada Corp 0 0 2 0 3.00
Sibanye Gold Limited 1 2 1 0 2.00

Paramount Gold Nevada Corp presently has a consensus target price of $3.00, suggesting a potential upside of 68.54%. Given Paramount Gold Nevada Corp’s stronger consensus rating and higher probable upside, research analysts clearly believe Paramount Gold Nevada Corp is more favorable than Sibanye Gold Limited.

Institutional and Insider Ownership

35.8% of Sibanye Gold Limited 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Sibanye Gold Limited pays an annual dividend of $0.32 per share and has a dividend yield of 5.4%. Paramount Gold Nevada Corp does not pay a dividend.

Profitability

This table compares Paramount Gold Nevada Corp and Sibanye Gold Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Gold Nevada Corp -599.29% -11.32% -10.95%
Sibanye Gold Limited N/A N/A N/A

Earnings and Valuation

This table compares Paramount Gold Nevada Corp and Sibanye Gold Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Paramount Gold Nevada Corp N/A N/A -$4.75 million N/A N/A
Sibanye Gold Limited $2.35 billion 0.59 $754.77 million N/A N/A

Sibanye Gold Limited has higher revenue and earnings than Paramount Gold Nevada Corp.

Summary

Sibanye Gold Limited beats Paramount Gold Nevada Corp on 8 of the 11 factors compared between the two stocks.

About Paramount Gold Nevada Corp

Paramount Gold Nevada Corp. is an exploration-stage mining company. The Company is engaged in the business of acquiring, exploring and developing precious metal projects in the United States. Its principal Nevada interest, the Sleeper Gold Project, is located in Humboldt County, Nevada. Its project located in Oregon, known as the Grassy Mountain Project, is situated in Malheur County, Oregon. As of June 30, 2016, the Company owned additional mining claims in the State of Nevada, including the Mill Creek property, which had 36 unpatented lode mining claims in Lander County, and the Spring Valley property, which had 38 lode mining claims in Pershing County. Its subsidiaries, New Sleeper Gold LLC and Sleeper Mining Company, LLC, operate its mining interests in Nevada. Its subsidiaries, Calico Resources Corp. and Calico Resources USA Corp., hold its interest in the Grassy Mountain Project in Oregon. As of June 30, 2016, the Company had not generated any revenues from operations.

About Sibanye Gold Limited

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.

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