Analyzing Rare Element Resource (REEMF) & Sibanye Gold (SBGL)

Rare Element Resource (OTCMKTS:REEMF) and Sibanye Gold (NYSE:SBGL) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Insider & Institutional Ownership

0.0% of Rare Element Resource shares are owned by institutional investors. Comparatively, 56.1% of Sibanye Gold shares are owned by institutional investors. 2.6% of Rare Element Resource shares are owned by company insiders. Comparatively, 0.1% of Sibanye Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Rare Element Resource and Sibanye Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rare Element Resource 0 0 0 0 N/A
Sibanye Gold 2 0 1 0 1.67

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rare Element Resource N/A N/A -$850,000.00 N/A N/A
Sibanye Gold $3.45 billion 0.27 -$334.13 million ($0.04) -94.50

Rare Element Resource has higher earnings, but lower revenue than Sibanye Gold.

Volatility and Risk

Rare Element Resource has a beta of 4.09, suggesting that its share price is 309% more volatile than the S&P 500. Comparatively, Sibanye Gold has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500.

Profitability

This table compares Rare Element Resource and Sibanye Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rare Element Resource N/A -44.49% -23.19%
Sibanye Gold N/A N/A N/A

Summary

Sibanye Gold beats Rare Element Resource on 5 of the 8 factors compared between the two stocks.

Rare Element Resource Company Profile

Rare Element Resources Ltd. explores for mineral properties in the United States. The company primarily explores for gold and rare earth element (REE) deposits. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in central Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.

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 Weltevreden Park, South Africa.

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