Financial Survey: Tahoe Resources (TAHO) versus Sibanye Gold (SBGL)

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

Institutional and Insider Ownership

65.2% of Tahoe Resources shares are held by institutional investors. Comparatively, 56.3% of Sibanye Gold shares are held by institutional investors. 0.1% of Sibanye Gold shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tahoe Resources and Sibanye Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tahoe Resources 0 1 2 0 2.67
Sibanye Gold 1 2 2 0 2.20

Profitability

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

Net Margins Return on Equity Return on Assets
Tahoe Resources -9.04% -1.80% -1.53%
Sibanye Gold N/A N/A N/A

Earnings and Valuation

This table compares Tahoe Resources 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
Tahoe Resources $733.60 million 1.55 $81.79 million $0.27 13.44
Sibanye Gold $3.45 billion 0.16 -$334.13 million ($0.04) -57.50

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

Risk & Volatility

Tahoe Resources has a beta of 0.11, suggesting that its stock price is 89% 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.

Summary

Tahoe Resources beats Sibanye Gold on 6 of the 11 factors compared between the two stocks.

About Tahoe Resources

Tahoe Resources Inc., together with its subsidiaries, acquires, explores for, develops, and operates mineral properties in the Americas. It explores for silver, gold, lead, zinc, and copper deposits, as well as precious metals assets. The company holds interest in the La Arena gold mine located in the Huamachuco district of northern Peru; Shahuindo mine located in the province of Cajabamba in northern Peru; and La Arena II, a copper-gold porphyry deposit located in Peru. It also holds interest in the Timmins mines, including the Bell Creek and Timmins West mines, the Fenn-Gib project, the Juby project, the Vogel project, and the Gold River project located in Timmins, Ontario. The company was formerly known as CKM Resources Inc. and changed its name to Tahoe Resources Inc. in January 2010. Tahoe Resources Inc. was incorporated in 2009 and is headquartered in Reno, Nevada.

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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