Analyzing Sibanye Gold (NYSE:SBSW) and Fortescue (OTCMKTS:FSUGY)

Sibanye Gold (NYSE:SBSW) and Fortescue (OTCMKTS:FSUGY) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Sibanye Gold and Fortescue”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sibanye Gold	$6.12 billion	N/A	-$398.42 million	N/A	N/A
Fortescue	$15.54 billion	2.89	$3.37 billion	N/A	N/A

Fortescue has higher revenue and earnings than Sibanye Gold.

Volatility & Risk

Sibanye Gold has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Fortescue has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Sibanye Gold and Fortescue, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sibanye Gold	1	2	1	0	2.00
Fortescue	1	2	0	1	2.25

Sibanye Gold currently has a consensus price target of $6.90, suggesting a potential downside of 44.16%. Given Sibanye Gold’s higher probable upside, equities analysts plainly believe Sibanye Gold is more favorable than Fortescue.

Profitability

This table compares Sibanye Gold and Fortescue’s 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
Fortescue	N/A	N/A	N/A

Insider and Institutional Ownership

34.9% of Sibanye Gold shares are held by institutional investors. 0.1% of Sibanye Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Fortescue beats Sibanye Gold on 5 of the 9 factors compared between the two stocks.

About Sibanye Gold

Sibanye Stillwater Limited, together with its subsidiaries, operates as a precious metals mining company in South Africa, the United States, Europe, and Australia. The company produces gold; platinum group metals (PGMs), including palladium, platinum, rhodium, iridium, and ruthenium; chrome; nickel; and silver, cobalt, and copper. It owns the East Boulder and Stillwater mines located in Montana, the United States; and Columbus metallurgical complex, which smelts the material mined to produce PGM-rich filter cake, as well as conducts PGM recycling activities. The company also involved in the Kroondal, Rustenburg, Marikana, and Platinum Mile operations situated in South Africa; Mimosa located on the southern portion in Zimbabwe; the Driefontein, Kloof, Rand Refinery, and Cooke surface operations located on the West Rand of the Witwatersrand Basin; and the Beatrix situated in the southern Free State. In addition, it owns an interest in surface tailings retreatment facilities; the Marathon PGM project in Ontario, Canada; the Altar and Rio Grande copper gold projects in the Andes in north-west Argentina; the Hoedspruit; and the Burnstone and southern Free State gold projects in South Africa. Sibanye Stillwater Limited was founded in 2013 and is headquartered in Weltevreden Park, South Africa.

About Fortescue

Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.