China Natural Resources (NASDAQ:CHNR) and Sandstorm Gold (NYSE:SAND) Head-To-Head Review

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Natural Resources	$2.94 million	1.88	-$1.95 million	N/A	N/A
Sandstorm Gold	$106.58 million	17.43	$41.72 million	$0.08	78.07

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

Volatility and Risk

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

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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations 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 51.45%. Given Sandstorm Gold’s higher possible upside, 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 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.