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

Dividends

Sibanye Gold pays an annual dividend of $0.14 per share and has a dividend yield of 3.0%. Richmont Mines does not pay a dividend.

Institutional & Insider Ownership

53.8% of Richmont Mines shares are owned by institutional investors. Comparatively, 36.4% 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Richmont Mines 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
Richmont Mines $127.39 million 4.81 $9.41 million $0.27 35.56
Sibanye Gold $2.13 billion 0.52 $252.44 million N/A N/A

Sibanye Gold has higher revenue and earnings than Richmont Mines.

Profitability

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

Net Margins Return on Equity Return on Assets
Richmont Mines 13.14% 8.60% 6.94%
Sibanye Gold N/A N/A N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Richmont Mines and Sibanye Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Richmont Mines 0 1 2 0 2.67
Sibanye Gold 0 1 1 0 2.50

Richmont Mines presently has a consensus price target of $12.33, suggesting a potential upside of 28.44%. Given Richmont Mines’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Richmont Mines is more favorable than Sibanye Gold.

Summary

Richmont Mines beats Sibanye Gold on 8 of the 12 factors compared between the two stocks.

Richmont Mines Company Profile

Richmont Mines Inc, formerly Ressources Minieres Rouyn Inc, is a Canada-based mining company. The Company is engaged in the mining, exploration and development of mining properties, principally gold. The Company operates gold mines at various sites in Quebec and Ontario. The Company’s segments include Quebec and Ontario. The Company is engaged in the production of gold from the Island Gold Mine in Ontario and the Beaufor Mine in Quebec. The Island Gold mine is located approximately 80 kilometers northeast of Wawa, Ontario. It is part of the Island Gold Project, which is divided into more than eight parts (properties) comprising approximately 200 patented, leased and staked claims covering approximately 8,000 hectares, mainly within the townships of Finan and Jacobson. The Island Gold Project is located in the Michipicoten Greenstone Belt. The Beaufor Mine is located approximately 20 kilometers northeast of Val-d’Or, Quebec.

Sibanye Gold 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.

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