Head to Head Analysis: Kinross Gold (KGC) versus Sibanye Gold (SBGL)

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

Earnings & Valuation

This table compares Kinross Gold and Sibanye Gold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kinross Gold $3.30 billion 1.09 $445.40 million $0.14 20.64
Sibanye Gold $3.45 billion 0.15 -$334.13 million ($0.04) -52.50

Kinross Gold has higher earnings, but lower revenue than Sibanye Gold. Sibanye Gold is trading at a lower price-to-earnings ratio than Kinross Gold, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kinross Gold and Sibanye Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinross Gold 1 5 3 0 2.22
Sibanye Gold 0 2 2 0 2.50

Kinross Gold presently has a consensus target price of $4.57, indicating a potential upside of 58.17%. Given Kinross Gold’s higher possible upside, analysts plainly believe Kinross Gold is more favorable than Sibanye Gold.

Profitability

This table compares Kinross Gold and Sibanye Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinross Gold 11.67% 5.73% 3.22%
Sibanye Gold N/A N/A N/A

Volatility & Risk

Kinross Gold has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Sibanye Gold has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.

Insider & Institutional Ownership

54.0% of Kinross Gold shares are held by institutional investors. Comparatively, 55.7% of Sibanye Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by 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

Kinross Gold beats Sibanye Gold on 11 of the 14 factors compared between the two stocks.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, extraction, and processing of gold-containing ore. It also engages in the reclamation of gold mining properties; and production and sale of silver. The company's gold production and exploration activities are carried out principally in Canada, the United States, Russia, Brazil, Chile, Ghana, and Mauritania. The company was founded in 1972 and is headquartered in Toronto, Canada.

About Sibanye Gold

Sibanye Gold Limited operates as a precious metals mining company in South Africa, Zimbabwe, and the United States. The company operates through PGM; and Gold and Uranium divisions. It owns and operates gold, and platinum group metals (PGM), including platinum, palladium, and rhodium operations and projects, as well as produces by-products, such as iridium, ruthenium, nickel, copper, and chrome. The company owns and operates four underground and surface gold operations in the West Witwatersrand region and the southern Free State province of South Africa; and underground and surface PGM operations in the Bushveld Igneous Complex in South Africa, the Great Dyke in Zimbabwe, and Montana in the United States. It also owns and manages extraction and processing facilities to produce gold doré; recycles PGMs from catalytic materials and other industrial sources; and operates a smelter and base metal refinery. Sibanye Gold Limited was incorporated in 2002 and is based in Westonaria, South Africa.

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