Sibanye Gold Limited (NYSE: SBGL) and Franco-Nevada Corporation (NYSE:FNV) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.
This table compares Sibanye Gold Limited and Franco-Nevada Corporation’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|
Volatility & Risk
Sibanye Gold Limited has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Franco-Nevada Corporation has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.
Sibanye Gold Limited pays an annual dividend of $0.32 per share and has a dividend yield of 5.5%. Franco-Nevada Corporation pays an annual dividend of $0.92 per share and has a dividend yield of 1.2%. Franco-Nevada Corporation pays out 119.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sibanye Gold Limited has raised its dividend for 4 consecutive years. Sibanye Gold Limited is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current recommendations and price targets for Sibanye Gold Limited and Franco-Nevada Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sibanye Gold Limited||1||2||1||0||2.00|
Franco-Nevada Corporation has a consensus price target of $79.85, indicating a potential upside of 2.33%. Given Franco-Nevada Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Franco-Nevada Corporation is more favorable than Sibanye Gold Limited.
Earnings & Valuation
This table compares Sibanye Gold Limited and Franco-Nevada Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sibanye Gold Limited||$2.36 billion||0.57||$756.58 million||N/A||N/A|
|Franco-Nevada Corporation||$663.10 million||21.46||$511.30 million||$0.77||101.34|
Sibanye Gold Limited has higher revenue and earnings than Franco-Nevada Corporation.
Insider & Institutional Ownership
14.2% of Sibanye Gold Limited shares are owned by institutional investors. Comparatively, 63.4% of Franco-Nevada Corporation 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Franco-Nevada Corporation beats Sibanye Gold Limited on 10 of the 16 factors compared between the two stocks.
About Sibanye Gold Limited
Sibanye Gold Limited (Sibanye) is a South Africa-based mining company. The Company owns and operates gold and uranium operations, and projects throughout the Witwatersrand Basin. Its segments include Driefontein, Kloof, Beatrix, Cooke and Corporate. The Company owns and operates four underground and surface gold operations: the Cooke, Driefontein and Kloof operations in the West Witwatersrand region, and the Beatrix operation in the southern Free State province. In addition to its mining activities, Sibanye owns and manages extraction and processing facilities at the operations where the gold-bearing ore is treated. The Company has various organic projects, including the Kloof and Driefontein below infrastructure projects on the West Rand and the Burnstone project on the South Rand of Gauteng province. Sibanye mines, extracts and processes gold ore to produce a product, dore. Sibanye derives uranium ore as a by-product of gold production from the Cooke operation.
About Franco-Nevada Corporation
Franco-Nevada Corporation (Franco-Nevada) is a gold-focused royalty and stream company. The Company has interests in silver, platinum group metals, oil and gas and other resource assets. The Company is engaged in resource sector royalty/stream acquisitions and management activities. It has a portfolio of properties in the United States, Canada, Mexico, Peru, Chile and Africa. Its properties in the United States include Goldstrike, Stillwater, Gold Quarry, Marigold, Fire Creek/Midas, Bald Mountain, South Arturo and Other. Its properties in Canada include Sudbury, Detour Lake, Golden Highway, Musselwhite, Hemlo, Kirkland Lake, Timmins West, Canadian Malartic and Other. Its properties in Latin America include Antapaccay, Antamina, Candelaria, Guadalupe-Palmarejo and Other. Its properties in Rest of World include Mine Waste Solutions (MWS), Sabodala, Subika, Tasiast, Karma, Duketon, Edikan and Other.
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