Comparing DRDGOLD (NYSE:DRD) & Platinum Group Metals (NYSE:PLG)

DRDGOLD (NYSE:DRD) and Platinum Group Metals (NYSE:PLG) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Earnings & Valuation

This table compares DRDGOLD and Platinum Group Metals’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DRDGOLD	$309.85 million	2.47	$72.27 million	N/A	N/A
Platinum Group Metals	N/A	N/A	-$5.66 million	($0.06)	-27.83

DRDGOLD has higher revenue and earnings than Platinum Group Metals.

Institutional and Insider Ownership

14.7% of DRDGOLD shares are owned by institutional investors. Comparatively, 16.3% of Platinum Group Metals shares are owned by institutional investors. 1.0% of DRDGOLD shares are owned by insiders. Comparatively, 0.0% of Platinum Group Metals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares DRDGOLD and Platinum Group Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DRDGOLD	N/A	N/A	N/A
Platinum Group Metals	N/A	-10.96%	-10.51%

Volatility and Risk

DRDGOLD has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for DRDGOLD and Platinum Group Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DRDGOLD	0	0	1	0	3.00
Platinum Group Metals	0	0	0	0	N/A

DRDGOLD presently has a consensus target price of $15.50, suggesting a potential upside of 74.84%. Given DRDGOLD’s higher probable upside, equities research analysts clearly believe DRDGOLD is more favorable than Platinum Group Metals.

Summary

DRDGOLD beats Platinum Group Metals on 7 of the 9 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 Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.