U.S. GoldMining (NASDAQ:USGO) versus Sibanye Stillwater (NYSE:SBSW) Critical Survey

Sibanye Stillwater (NYSE:SBSW) and U.S. GoldMining (NASDAQ:USGO) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sibanye Stillwater and U.S. GoldMining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sibanye Stillwater	1	4	0	0	1.80
U.S. GoldMining	0	0	1	0	3.00

Sibanye Stillwater presently has a consensus target price of $5.17, suggesting a potential upside of 11.35%. U.S. GoldMining has a consensus target price of $24.00, suggesting a potential upside of 170.88%. Given U.S. GoldMining’s stronger consensus rating and higher possible upside, analysts clearly believe U.S. GoldMining is more favorable than Sibanye Stillwater.

Earnings & Valuation

This table compares Sibanye Stillwater and U.S. GoldMining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sibanye Stillwater	$108.32 billion	0.03	-$2.05 billion	N/A	N/A
U.S. GoldMining	N/A	N/A	-$9.36 million	N/A	N/A

U.S. GoldMining has lower revenue, but higher earnings than Sibanye Stillwater.

Profitability

This table compares Sibanye Stillwater and U.S. GoldMining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sibanye Stillwater	N/A	N/A	N/A
U.S. GoldMining	N/A	N/A	N/A

Institutional and Insider Ownership

34.9% of Sibanye Stillwater shares are held by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are held by institutional investors. 0.1% of Sibanye Stillwater shares are held by insiders. Comparatively, 2.0% of U.S. GoldMining shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Sibanye Stillwater has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

Summary

U.S. GoldMining beats Sibanye Stillwater on 6 of the 8 factors compared between the two stocks.

About Sibanye Stillwater

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 U.S. GoldMining

U.S. GoldMining Inc., an exploration stage company, engages in the exploration and development of mineral properties in the United States. The company's primary asset is the 100%-owned Whistler exploration property, a gold-copper exploration project comprising mining claims totaling 53,700 acres located in Yentna Mining District, Alaska. The company was incorporated in 2015 and is based in Vancouver, Canada. U.S. GoldMining Inc. operates as a subsidiary of GoldMining Inc.