DRDGOLD (NYSE:DRD) versus Jaguar Mining (OTCMKTS:JAGGF) Financial Analysis

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$158.63 million	2.36	-$1.29 million	($0.32)	-14.63
DRDGOLD	$433.84 million	5.90	$123.57 million	$1.26	23.48

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.

Institutional & Insider Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jaguar Mining and DRDGOLD, as provided by MarketBeat.com.

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

DRDGOLD has a consensus price target of $30.50, indicating a potential upside of 3.09%. Given DRDGOLD’s stronger consensus rating and higher possible upside, analysts clearly believe DRDGOLD is more favorable than Jaguar Mining.

Volatility & Risk

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

Summary

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

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.

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.