Analyzing Sandstorm Gold (NYSE:SAND) & China Natural Resources (NASDAQ:CHNR)

Sandstorm Gold (NYSE:SAND) and China Natural Resources (NASDAQ:CHNR) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

52.0% of Sandstorm Gold shares are held by institutional investors. Comparatively, 0.0% of China Natural Resources shares are held by institutional investors. 1.5% of Sandstorm Gold shares are held by insiders. Comparatively, 23.2% of China Natural Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Sandstorm Gold has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, China Natural Resources has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Sandstorm Gold and China Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandstorm Gold	17.55%	2.06%	1.56%
China Natural Resources	N/A	N/A	N/A

Valuation & Earnings

This table compares Sandstorm Gold and China Natural Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sandstorm Gold	$106.58 million	16.80	$41.72 million	$0.08	75.26
China Natural Resources	$2.94 million	1.74	-$1.95 million	N/A	N/A

Sandstorm Gold has higher revenue and earnings than China Natural Resources.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sandstorm Gold and China Natural Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandstorm Gold	0	2	3	0	2.60
China Natural Resources	0	0	0	0	N/A

Sandstorm Gold currently has a consensus price target of $9.46, suggesting a potential upside of 57.12%. Given Sandstorm Gold’s higher probable upside, equities research analysts clearly believe Sandstorm Gold is more favorable than China Natural Resources.

Summary

Sandstorm Gold beats China Natural Resources on 10 of the 11 factors compared between the two stocks.

About Sandstorm Gold

Sandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements from companies that have advanced stage operating mines. It offers upfront payments for companies to acquire a stream and receives the right to purchase a percentage of a mine's production for the life of the mine. The company has a portfolio of 243 streams and royalties. It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.

About China Natural Resources

China Natural Resources, Inc., through its subsidiaries, engages in the exploration and mining of metal properties in the People's Republic of China. It explores for lead, silver, and other nonferrous metals. The company holds interest in the Moruogu Tong mine that covers an area of 7.81 square kilometers located in Bayannaoer City, Inner Mongolia. It also offers equipment for rural wastewater treatment; and engineering. The company was incorporated in 1993 and is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. operates as a subsidiary of Feishang Industrial Group Co., Ltd.