Comparing Sibanye Gold (NYSE:SBSW) & Electra Battery Materials (NASDAQ:ELBM)

Sibanye Gold (NYSE:SBSW) and Electra Battery Materials (NASDAQ:ELBM) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Insider & Institutional Ownership

34.9% of Sibanye Gold shares are owned by institutional investors. Comparatively, 32.9% of Electra Battery Materials shares are owned by institutional investors. 0.1% of Sibanye Gold shares are owned by company insiders. Comparatively, 22.7% of Electra Battery Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Sibanye Gold and Electra Battery Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sibanye Gold	N/A	N/A	N/A
Electra Battery Materials	N/A	-48.57%	-17.70%

Earnings & Valuation

This table compares Sibanye Gold and Electra Battery Materials”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sibanye Gold	$6.12 billion	N/A	-$398.42 million	N/A	N/A
Electra Battery Materials	N/A	N/A	-$21.49 million	($1.27)	-0.80

Electra Battery Materials has lower revenue, but higher earnings than Sibanye Gold.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sibanye Gold and Electra Battery Materials, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sibanye Gold	1	1	2	2	2.83
Electra Battery Materials	1	0	1	0	2.00

Sibanye Gold currently has a consensus price target of $12.87, indicating a potential downside of 35.62%. Electra Battery Materials has a consensus price target of $2.10, indicating a potential upside of 107.92%. Given Electra Battery Materials’ higher possible upside, analysts plainly believe Electra Battery Materials is more favorable than Sibanye Gold.

Volatility and Risk

Sibanye Gold has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Electra Battery Materials has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500.

Summary

Sibanye Gold beats Electra Battery Materials on 7 of the 11 factors compared between the two stocks.

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.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.