Critical Contrast: Sibanye Gold Limited (SBGL) and Alamos Gold (AGI)
Sibanye Gold Limited (NYSE: SBGL) and Alamos Gold (NYSE:AGI) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Valuation and Earnings
This table compares Sibanye Gold Limited and Alamos Gold’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||$1.47 billion||2.00||$224.30 million||N/A||N/A|
|Alamos Gold||$510.10 million||4.36||$153.90 million||($0.05)||-147.97|
Sibanye Gold Limited has higher revenue and earnings than Alamos Gold.
Sibanye Gold Limited pays an annual dividend of $0.32 per share and has a dividend yield of 5.8%. Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Alamos Gold pays out -40.0% of its earnings in the form of a dividend.
This table compares Sibanye Gold Limited and Alamos Gold’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|
Insider & Institutional Ownership
35.8% of Sibanye Gold Limited shares are held by institutional investors. Comparatively, 63.3% of Alamos Gold shares are held by institutional investors. 0.1% of Sibanye Gold Limited shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Sibanye Gold Limited has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Sibanye Gold Limited and Alamos Gold, 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|
Alamos Gold has a consensus price target of $10.67, indicating a potential upside of 44.14%. Given Alamos Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Alamos Gold is more favorable than Sibanye Gold Limited.
Alamos Gold beats Sibanye Gold Limited on 8 of the 13 factors compared between the two stocks.
Sibanye Gold Limited Company Profile
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.
Alamos Gold Company Profile
Alamos Gold Inc. is a Canada-based mid-tier gold producer. The Company owns and operates the Mulatos Mine, as well as the Esperanza, Agi Dagi, Kirazli and Camyurt gold development projects. The Mulatos mine is located within the 30,536 hectares Salamandra group of concessions in the state of Sonora in northwest Mexico. The Esperanza Gold Project is a development stage asset located in south-central Mexico in the state of Morelos. Agi Dagi and Kirazli gold development projects are located in Canakkale Province on the Biga Peninsula of northwestern Turkey. The Camyurt project is located near southeast of Canakkale, Turkey. In addition, the Company owns a 100% interest in the Quartz Mountain Property, which is located on the northern extension of the prolific Basin and Range Province of Nevada in Oregon.
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