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Financial Analysis: Sibanye Gold Limited (SBGL) & Gold Fields Limited (GFI) - Watch List News

Monday, 26 June 2017

Sibanye Gold Limited (NYSE: SBGL) and Gold Fields Limited (NYSE:GFI) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.

Profitability

This table compares Sibanye Gold Limited and Gold Fields Limited’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
Gold Fields Limited N/A N/A N/A

Insider and Institutional Ownership

14.0% of Sibanye Gold Limited shares are held by institutional investors. Comparatively, 33.2% of Gold Fields Limited shares are held by institutional investors. 0.1% of Sibanye Gold Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Sibanye Gold Limited and Gold Fields Limited, as provided by MarketBeat.com.

  Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sibanye Gold Limited 1 3 1 0 2.00
Gold Fields Limited 3 1 2 0 1.83

Gold Fields Limited has a consensus target price of $5.34, suggesting a potential upside of 46.70%. Given Gold Fields Limited’s higher probable upside, analysts clearly believe Gold Fields Limited is more favorable than Sibanye Gold Limited.

Dividends

Sibanye Gold Limited pays an annual dividend of $0.32 per share and has a dividend yield of 6.3%. Gold Fields Limited pays an annual dividend of $0.07 per share and has a dividend yield of 1.9%.

Earnings and Valuation

This table compares Sibanye Gold Limited and Gold Fields Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Gross Revenue Price/Sales
Ratio
EBITDA Earnings
Per Share
Price/Earnings
Ratio
Sibanye Gold Limited $2.43 billion 0.49 $781.16 million N/A N/A
Gold Fields Limited $2.75 billion 1.09 $1.17 billion N/A N/A

Gold Fields Limited has higher revenue and earnings than Sibanye Gold Limited.

Risk and Volatility

Sibanye Gold Limited has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500. Comparatively, Gold Fields Limited has a beta of -1.06, indicating that its share price is 206% less volatile than the S&P 500.

Summary

Gold Fields Limited beats Sibanye Gold Limited on 6 of the 10 factors compared between the two stocks.


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