Nexa Resources (NYSE:NEXA – Get Free Report) and Sibanye Gold (NYSE:SBSW – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Institutional & Insider Ownership
34.9% of Sibanye Gold shares are held by institutional investors. 0.1% of Sibanye Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Nexa Resources and Sibanye Gold, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexa Resources | 3 | 3 | 0 | 0 | 1.50 |
| Sibanye Gold | 0 | 4 | 1 | 0 | 2.20 |
Volatility & Risk
Nexa Resources has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Sibanye Gold has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Valuation & Earnings
This table compares Nexa Resources and Sibanye Gold”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexa Resources | $2.77 billion | 0.24 | -$205.03 million | ($0.68) | -7.45 |
| Sibanye Gold | $6.12 billion | N/A | -$398.42 million | $0.52 | 16.46 |
Nexa Resources has higher earnings, but lower revenue than Sibanye Gold. Nexa Resources is trading at a lower price-to-earnings ratio than Sibanye Gold, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nexa Resources and Sibanye Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexa Resources | -3.26% | -6.54% | -1.60% |
| Sibanye Gold | N/A | N/A | N/A |
Summary
Sibanye Gold beats Nexa Resources on 10 of the 13 factors compared between the two stocks.
About Nexa Resources
Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg, Luxembourg. Nexa Resources S.A. operates as a subsidiary of Votorantim S.A.
About Sibanye Gold
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.
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