TRX Gold (NYSE:TRX – Get Free Report) and U.S. GoldMining (NASDAQ:USGO – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares TRX Gold and U.S. GoldMining”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
TRX Gold | $44.28 million | 2.06 | -$470,000.00 | N/A | N/A |
U.S. GoldMining | N/A | N/A | -$9.36 million | N/A | N/A |
TRX Gold has higher revenue and earnings than U.S. GoldMining.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
TRX Gold | 0 | 0 | 2 | 0 | 3.00 |
U.S. GoldMining | 0 | 0 | 1 | 0 | 3.00 |
TRX Gold currently has a consensus price target of $1.63, indicating a potential upside of 403.10%. U.S. GoldMining has a consensus price target of $26.50, indicating a potential upside of 117.84%. Given TRX Gold’s higher possible upside, equities analysts plainly believe TRX Gold is more favorable than U.S. GoldMining.
Profitability
This table compares TRX Gold and U.S. GoldMining’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
TRX Gold | 6.11% | 2.21% | 1.51% |
U.S. GoldMining | N/A | -71.04% | -65.02% |
Risk and Volatility
TRX Gold has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.87, suggesting that its stock price is 187% more volatile than the S&P 500.
Institutional & Insider Ownership
1.1% of TRX Gold shares are owned by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are owned by institutional investors. 2.3% of TRX Gold shares are owned by insiders. Comparatively, 2.0% of U.S. GoldMining shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
TRX Gold beats U.S. GoldMining on 9 of the 10 factors compared between the two stocks.
About TRX Gold
TRX Gold Corporation engages in the exploration, development, and production of mineral property interests in the United Republic of Tanzania. The company primarily explores for gold deposits. It holds interests in the Buckreef gold project that comprises a single Special Mining License covering an area of 16.04 square kilometers and 12 Prospecting Licenses covering 98.19 square kilometers located in north-central Tanzania. The company was formerly known as Tanzanian Gold Corporation and changed its name to TRX Gold Corporation in May 2022. TRX Gold Corporation was incorporated in 1990 and is based in Oakville, Canada.
About U.S. GoldMining
U.S. GoldMining Inc., an exploration stage company, engages in the exploration and development of mineral properties in the United States. The company's primary asset is the 100%-owned Whistler exploration property, a gold-copper exploration project comprising mining claims totaling 53,700 acres located in Yentna Mining District, Alaska. The company was incorporated in 2015 and is based in Vancouver, Canada. U.S. GoldMining Inc. operates as a subsidiary of GoldMining Inc.
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