Yamana Gold (NYSE:AUY) vs. Sibanye Gold (SBGL) Critical Review


Editorial Staff Wcryptn

Date: 07.08.2018

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

This is a summary of current recommendations and price targets for Sibanye Gold and Yamana Gold, as provided by MarketBeat.

  Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sibanye Gold 0 2 2 0 2.50
Yamana Gold 0 3 8 0 2.73

Yamana Gold has a consensus price target of $4.00, indicating a potential upside of 32.01%. Given Yamana Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Yamana Gold is more favorable than Sibanye Gold.

Institutional & Insider Ownership

54.4% of Sibanye Gold shares are held by institutional investors. Comparatively, 43.5% of Yamana Gold shares are held by institutional investors. 2.7% of Yamana Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sibanye Gold and Yamana Gold’s revenue, earnings per share (EPS) and valuation.

  Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sibanye Gold $3.45 billion 0.19 -$334.13 million ($0.04) -65.50
Yamana Gold $1.80 billion 1.59 -$194.40 million $0.08 37.88

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


Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Sibanye Gold does not pay a dividend. Yamana Gold pays out 25.0% of its earnings in the form of a dividend. Sibanye Gold has raised its dividend for 2 consecutive years.

Volatility & Risk

Sibanye Gold has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, Yamana Gold has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.


This table compares Sibanye Gold and Yamana Gold’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
Yamana Gold -15.63% 3.49% 1.77%


Yamana Gold beats Sibanye Gold on 12 of the 17 factors compared between the two stocks.

Sibanye Gold Company Profile

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.

Yamana Gold Company Profile

Yamana Gold Inc. operates as a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina. It primarily sells precious metals, including gold, silver, and copper. The company was formerly known as Yamana Resources Inc. and changed its name to Yamana Gold Inc. in July 2003. Yamana Gold Inc. was founded in 1980 and is based in Toronto, Canada.

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