Sandstorm Gold (NYSE:SAND) versus China Natural Resources (NASDAQ:CHNR) Financial Survey

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

Profitability

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

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

Institutional & Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Natural Resources	$2.94 million	1.81	-$1.95 million	N/A	N/A
Sandstorm Gold	$170.01 million	10.52	$41.72 million	$0.08	75.06

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

Analyst Recommendations

This is a summary of recent ratings and price targets for China Natural Resources and Sandstorm Gold, as provided by MarketBeat.

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

Sandstorm Gold has a consensus target price of $9.46, suggesting a potential upside of 57.51%. Given Sandstorm Gold’s higher probable upside, analysts clearly believe Sandstorm Gold is more favorable than China Natural Resources.

Risk and Volatility

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

Summary

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

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.

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.