Reviewing Sandstorm Gold (NYSE:SAND) and Pelangio Exploration (OTCMKTS:PGXPF)

Sandstorm Gold (NYSE:SAND) and Pelangio Exploration (OTCMKTS:PGXPF) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Sandstorm Gold and Pelangio Exploration’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandstorm Gold	17.78%	2.38%	1.87%
Pelangio Exploration	N/A	N/A	-128.78%

Analyst Recommendations

This is a summary of current recommendations and price targets for Sandstorm Gold and Pelangio Exploration, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandstorm Gold	1	2	4	0	2.43
Pelangio Exploration	0	0	0	0	0.00

Sandstorm Gold presently has a consensus target price of $10.15, indicating a potential downside of 2.59%. Given Sandstorm Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Sandstorm Gold is more favorable than Pelangio Exploration.

Earnings & Valuation

This table compares Sandstorm Gold and Pelangio Exploration”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sandstorm Gold	$176.28 million	17.33	$14.29 million	$0.12	86.83
Pelangio Exploration	N/A	N/A	-$550,000.00	N/A	N/A

Sandstorm Gold has higher revenue and earnings than Pelangio Exploration.

Insider & Institutional Ownership

52.0% of Sandstorm Gold shares are owned by institutional investors. 1.5% of Sandstorm Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Sandstorm Gold beats Pelangio Exploration on 10 of the 10 factors compared between the two stocks.

About Sandstorm Gold

Sandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements from companies that have advanced stage operating mines. It offers upfront payments for companies to acquire a stream and receives the right to purchase a percentage of a mine's production for the life of the mine. The company has a portfolio of 243 streams and royalties. It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.

About Pelangio Exploration

Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.