Analyzing DRDGOLD (NYSE:DRD) & Jaguar Mining (OTCMKTS:JAGGF)

DRDGOLD (NYSE:DRD) and Jaguar Mining (OTCMKTS:JAGGF) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability

This table compares DRDGOLD and Jaguar Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DRDGOLD	N/A	N/A	N/A
Jaguar Mining	-17.87%	1.41%	1.00%

Volatility and Risk

DRDGOLD has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Jaguar Mining has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

14.7% of DRDGOLD shares are held by institutional investors. 1.0% of DRDGOLD shares are held by company insiders. Comparatively, 0.6% of Jaguar Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for DRDGOLD and Jaguar Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DRDGOLD	0	0	2	1	3.33
Jaguar Mining	0	0	0	0	0.00

DRDGOLD currently has a consensus target price of $30.50, suggesting a potential upside of 8.97%. Given DRDGOLD’s stronger consensus rating and higher possible upside, equities analysts plainly believe DRDGOLD is more favorable than Jaguar Mining.

Valuation and Earnings

This table compares DRDGOLD and Jaguar Mining”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DRDGOLD	$433.84 million	5.58	$123.57 million	$1.26	22.21
Jaguar Mining	$158.63 million	2.27	-$1.29 million	($0.32)	-14.08

DRDGOLD has higher revenue and earnings than Jaguar Mining. Jaguar Mining is trading at a lower price-to-earnings ratio than DRDGOLD, indicating that it is currently the more affordable of the two stocks.

Summary

DRDGOLD beats Jaguar Mining on 12 of the 15 factors compared between the two stocks.

About DRDGOLD

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. It also involved in the exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGOLD Limited was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited is a subsidiary of Sibanye Gold Limited.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.