Barrick Gold Corporation (NYSE: ABX) and Sandstorm Gold (NASDAQ:SAND) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.
This is a summary of current ratings and recommmendations for Barrick Gold Corporation and Sandstorm Gold, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Barrick Gold Corporation||0||8||6||0||2.43|
Barrick Gold Corporation presently has a consensus target price of $20.72, suggesting a potential upside of 21.59%. Sandstorm Gold has a consensus target price of $6.00, suggesting a potential upside of 38.25%. Given Sandstorm Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Sandstorm Gold is more favorable than Barrick Gold Corporation.
Insider and Institutional Ownership
58.9% of Barrick Gold Corporation shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Barrick Gold Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. Sandstorm Gold does not pay a dividend. Barrick Gold Corporation pays out 5.9% of its earnings in the form of a dividend.
This table compares Barrick Gold Corporation and Sandstorm Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Barrick Gold Corporation||26.95%||8.91%||3.71%|
Earnings and Valuation
This table compares Barrick Gold Corporation and Sandstorm Gold’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Barrick Gold Corporation||$8.77 billion||2.27||$4.42 billion||$2.02||8.44|
|Sandstorm Gold||$68.17 million||11.75||$43.87 million||N/A||N/A|
Barrick Gold Corporation has higher revenue and earnings than Sandstorm Gold.
Barrick Gold Corporation beats Sandstorm Gold on 8 of the 13 factors compared between the two stocks.
About Barrick Gold Corporation
Barrick Gold Corporation (Barrick) is a gold mining company. The Company is principally engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary, Acacia, owns gold mines and exploration properties in Africa. It also holds interest in gold mines, including Porgera and Kalgoorlie, and copper mines, such as Zaldivar and Lumwana. The Pascua-Lama project is located on the border between Chile and Argentina. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.
About Sandstorm Gold
Sandstorm Gold Ltd is a Canada-based company engaged in providing financing to mining companies. The Company focuses on acquiring gold and other metal purchase agreements (Gold Streams or Silver Streams), and royalties from companies that have advanced stage development projects or operating mines. The Company operates in the segments of Bachelor Lake, Black Fox, Chapada Santa Elena, Yamana Silver Stream, Chapada, Diavik Mine, Other Royalties, Other and Corporate. The Company has acquired a portfolio of approximately 140 streams and royalties, of which approximately 20 of the underlying mines are producing. The Company’s projects include Yamana Silver Stream; Cerro Moro, which is located approximately 70 kilometers southwest of the coastal port city of Puerto Deseado; Chapada Mine, which is located 270 kilometers northwest of Brasilia in Goias state, Brazil; Black Fox Mine; Santa Elena Mine; Bachelor Lake Mine; Karma Mine; Ming Mine, Bracemac-McLeod Mine and Aurizona Mine.
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