Solgold (OTCMKTS:SLGGF) versus DRDGOLD (NYSE:DRD) Head-To-Head Analysis

DRDGOLD (NYSE:DRD) and Solgold (OTCMKTS:SLGGF) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Risk & Volatility

DRDGOLD has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Solgold has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DRDGOLD and Solgold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DRDGOLD	0	0	2	1	3.33
Solgold	0	0	0	0	0.00

DRDGOLD presently has a consensus target price of $46.50, indicating a potential upside of 78.63%. Given DRDGOLD’s stronger consensus rating and higher probable upside, equities analysts clearly believe DRDGOLD is more favorable than Solgold.

Earnings and Valuation

This table compares DRDGOLD and Solgold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DRDGOLD	$433.84 million	5.19	$123.57 million	N/A	N/A
Solgold	N/A	N/A	-$36.25 million	($0.01)	-37.40

DRDGOLD has higher revenue and earnings than Solgold.

Profitability

This table compares DRDGOLD and Solgold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DRDGOLD	N/A	N/A	N/A
Solgold	N/A	-26.92%	-12.63%

Institutional and Insider Ownership

14.7% of DRDGOLD shares are owned by institutional investors. 1.0% of DRDGOLD shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

DRDGOLD beats Solgold on 10 of the 11 factors compared between the two stocks.

About DRDGOLD

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. It also involved in the exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGOLD Limited was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited is a subsidiary of Sibanye Gold Limited.

About Solgold

SolGold Plc, a mineral exploration and development company, explores for and develops mineral properties in Ecuador, Australia, Chile, and Solomon Islands. The company primarily explores for copper, gold, silver, and molybdenum deposits. Its flagship project is the Cascabel Project that covers an area of approximately 50 square kilometers located in Imbabura province, Northern Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold Plc was incorporated in 2005 and is headquartered in Brisbane, Australia.