Financial Analysis: Sibanye Stillwater (NYSE:SBSW) versus MAG Silver (NYSE:MAG)
Sibanye Stillwater (NYSE:SBSW) and MAG Silver (NYSE:MAG) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Earnings and Valuation
This table compares Sibanye Stillwater and MAG Silver’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sibanye Stillwater||$5.04 billion||2.02||$4.50 million||$0.01||1,395.00|
|MAG Silver||N/A||N/A||-$4.43 million||($0.05)||-314.60|
This table compares Sibanye Stillwater and MAG Silver’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
13.3% of Sibanye Stillwater shares are held by institutional investors. Comparatively, 38.5% of MAG Silver shares are held by institutional investors. 0.1% of Sibanye Stillwater shares are held by company insiders. Comparatively, 8.7% of MAG Silver shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Sibanye Stillwater has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, MAG Silver has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
This is a summary of current ratings for Sibanye Stillwater and MAG Silver, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sibanye Stillwater presently has a consensus price target of $20.00, indicating a potential upside of 43.37%. MAG Silver has a consensus price target of $19.50, indicating a potential upside of 23.97%. Given Sibanye Stillwater’s higher possible upside, equities analysts clearly believe Sibanye Stillwater is more favorable than MAG Silver.
Sibanye Stillwater beats MAG Silver on 8 of the 11 factors compared between the two stocks.
About Sibanye Stillwater
Sibanye Stillwater Limited operates as a precious metals mining company in South Africa, the United States, Zimbabwe, Canada, and Argentina. The company produces gold; platinum group metals (PGMs), including palladium, platinum, and rhodium projects; and by-products, such as iridium, ruthenium, nickel, copper, and chrome. 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 is also involved in the Kroondal, Rustenburg, Marikana, and Platinum Mile operations situated in South Africa; Mimosa located on the southern portion of the Great Dyke in Zimbabwe; the Driefontein, Kloof, 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, Zondernaam, and Vygenhoek PGM projects in South Africa; and the Burnstone and southern Free State gold projects in South Africa. Sibanye Gold Limited was incorporated in 2002 and is headquartered in Weltevreden Park, South Africa.
About MAG Silver
MAG Silver Corp. focuses on the acquisition, exploration, and development of mineral properties primarily in the Americas. It explores for silver, gold, lead, and zinc deposits. The company's principal asset is the 44% owned Juanicipio project located in the Fresnillo District, Zacatecas State, Mexico. MAG Silver Corp. is headquartered in Vancouver, Canada.
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