Platinum Group Metals (NYSE:PLG) versus TRX Gold (NYSE:TRX) Financial Review

Platinum Group Metals (NYSE:PLG) and TRX Gold (NYSE:TRX) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Platinum Group Metals and TRX Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Platinum Group Metals	0	0	0	0	0.00
TRX Gold	0	0	1	0	3.00

TRX Gold has a consensus target price of $1.10, indicating a potential upside of 197.30%. Given TRX Gold’s stronger consensus rating and higher possible upside, analysts clearly believe TRX Gold is more favorable than Platinum Group Metals.

Valuation & Earnings

This table compares Platinum Group Metals and TRX Gold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Platinum Group Metals	N/A	N/A	-$4.61 million	($0.04)	-38.00
TRX Gold	$47.73 million	2.20	-$470,000.00	N/A	N/A

TRX Gold has higher revenue and earnings than Platinum Group Metals.

Institutional and Insider Ownership

16.3% of Platinum Group Metals shares are held by institutional investors. Comparatively, 1.1% of TRX Gold shares are held by institutional investors. 0.0% of Platinum Group Metals shares are held by insiders. Comparatively, 2.3% of TRX Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Platinum Group Metals and TRX Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Platinum Group Metals	N/A	-10.13%	-9.69%
TRX Gold	6.11%	2.21%	1.51%

Volatility and Risk

Platinum Group Metals has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, TRX Gold has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Summary

TRX Gold beats Platinum Group Metals on 9 of the 12 factors compared between the two stocks.

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.

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.