Critical Comparison: Sibanye Gold (SBGL) versus Its Peers

Sibanye Gold (NYSE: SBGL) is one of 41 publicly-traded companies in the “Gold & silver ores” industry, but how does it weigh in compared to its competitors? We will compare Sibanye Gold to related businesses based on the strength of its dividends, valuation, profitability, risk, institutional ownership, analyst recommendations and earnings.

Institutional & Insider Ownership

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48.2% of Sibanye Gold shares are held by institutional investors. Comparatively, 31.5% of shares of all “Gold & silver ores” companies are held by institutional investors. 10.5% of shares of all “Gold & silver ores” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sibanye Gold and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sibanye Gold $3.45 billion -$334.13 million N/A
Sibanye Gold Competitors $1.40 billion $84.66 million 42.92

Sibanye Gold has higher revenue, but lower earnings than its competitors.

Profitability

This table compares Sibanye Gold and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sibanye Gold N/A N/A N/A
Sibanye Gold Competitors -8.64% 3.68% 2.67%

Risk & Volatility

Sibanye Gold has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, Sibanye Gold’s competitors have a beta of 0.34, indicating that their average share price is 66% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Sibanye Gold and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sibanye Gold 0 1 3 0 2.75
Sibanye Gold Competitors 421 1737 1624 67 2.35

As a group, “Gold & silver ores” companies have a potential upside of 19.78%. Given Sibanye Gold’s competitors higher possible upside, analysts plainly believe Sibanye Gold has less favorable growth aspects than its competitors.

Summary

Sibanye Gold competitors beat Sibanye Gold on 7 of the 12 factors compared.

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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