Comparing Sibanye Stillwater (NYSE:SBSW) and Gold Royalty (NYSE:GROY)

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

Dividends

Sibanye Stillwater pays an annual dividend of $0.08 per share and has a dividend yield of 1.6%. Gold Royalty pays an annual dividend of $0.01 per share and has a dividend yield of 0.7%. Gold Royalty pays out -5.9% of its earnings in the form of a dividend.

Profitability

This table compares Sibanye Stillwater and Gold Royalty’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
Gold Royalty	-381.76%	-0.53%	-0.40%

Earnings and Valuation

This table compares Sibanye Stillwater and Gold Royalty”s 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
Gold Royalty	$6.50 million	38.36	-$26.76 million	($0.17)	-8.68

Gold Royalty has lower revenue, but higher earnings than Sibanye Stillwater.

Insider & Institutional Ownership

34.9% of Sibanye Stillwater shares are held by institutional investors. Comparatively, 33.8% of Gold Royalty shares are held by institutional investors. 0.1% of Sibanye Stillwater shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Sibanye Stillwater has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sibanye Stillwater	1	4	0	0	1.80
Gold Royalty	0	0	2	0	3.00

Sibanye Stillwater presently has a consensus price target of $5.17, suggesting a potential upside of 4.91%. Gold Royalty has a consensus price target of $3.67, suggesting a potential upside of 148.59%. Given Gold Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Gold Royalty is more favorable than Sibanye Stillwater.

Summary

Sibanye Stillwater beats Gold Royalty on 8 of the 14 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 Gold Royalty

Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.