Lexaria Bioscience (OTCMKTS:LXRP) versus U.S. Gold (NASDAQ:USAU) Critical Comparison

U.S. Gold (NASDAQ:USAU) and Lexaria Bioscience (OTCMKTS:LXRP) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Institutional and Insider Ownership

6.6% of U.S. Gold shares are held by institutional investors. Comparatively, 0.1% of Lexaria Bioscience shares are held by institutional investors. 11.1% of U.S. Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares U.S. Gold and Lexaria Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Gold	N/A	-59.61%	-42.24%
Lexaria Bioscience	-1,046.77%	-157.62%	-148.09%

Earnings & Valuation

This table compares U.S. Gold and Lexaria Bioscience”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Gold	N/A	N/A	-$6.90 million	($1.36)	-7.31
Lexaria Bioscience	$380,000.00	0.00	-$4.09 million	N/A	N/A

Lexaria Bioscience has higher revenue and earnings than U.S. Gold.

Analyst Ratings

This is a summary of current ratings and price targets for U.S. Gold and Lexaria Bioscience, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Gold	0	0	2	1	3.33
Lexaria Bioscience	0	0	0	0	0.00

U.S. Gold currently has a consensus target price of $11.50, suggesting a potential upside of 15.69%. Given U.S. Gold’s stronger consensus rating and higher probable upside, analysts clearly believe U.S. Gold is more favorable than Lexaria Bioscience.

Summary

U.S. Gold beats Lexaria Bioscience on 9 of the 11 factors compared between the two stocks.

About U.S. Gold

U.S. Gold Corp. engages in the exploration and development of gold and precious metals in the United States. It also explores for copper and silver deposits. The company holds 100% interests in the CK Gold project, which consists of various mining leases and other mineral rights covering approximately 1,120 acres in Laramie County, Wyoming; the Keystone project that consists of 601 unpatented lode mining claims covering approximately 20 square miles in Eureka County, Nevada; and the Challis Gold project, which consists of 77 unpatented lode mining claims covering approximately 1,710 acres in Lemhi County, Idaho. It also has earn-in agreement to acquire a 50% ownership interest in the Maggie Creek project located in Eureka County, Nevada. The company was formerly known as Dataram Corporation and changed its name to U.S. Gold Corp. in June 2017. U.S. Gold Corp. is based in Elko, Nevada.

About Lexaria Bioscience

Lexaria Bioscience Corp. operates in the drug delivery platform business. It develops and out-licenses its DehydraTECH technology for the delivery of bioactive compounds that promotes healthy ingestion methods, lower overall dosing, and higher effectiveness in active molecule delivery. The company has licensed DehydraTECH to various companies operating in the nicotine, pharmaceutical, nutraceutical, and vitamin industries. Lexaria Bioscience Corp. was founded in 2004 and is headquartered in Kelowna, Canada.