US Gold (NASDAQ:USAU – Get Free Report) and Kinross Gold (NYSE:KGC – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations and price targets for US Gold and Kinross Gold, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
US Gold | 0 | 0 | 3 | 0 | 3.00 |
Kinross Gold | 0 | 2 | 6 | 2 | 3.00 |
US Gold currently has a consensus price target of $14.6667, indicating a potential upside of 19.34%. Kinross Gold has a consensus price target of $20.0714, indicating a potential upside of 5.06%. Given US Gold’s higher probable upside, research analysts clearly believe US Gold is more favorable than Kinross Gold.
Insider and Institutional Ownership
Valuation and Earnings
This table compares US Gold and Kinross Gold”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
US Gold | N/A | N/A | -$20.56 million | ($1.78) | -6.90 |
Kinross Gold | $5.15 billion | 4.52 | $948.80 million | $1.24 | 15.41 |
Kinross Gold has higher revenue and earnings than US Gold. US Gold is trading at a lower price-to-earnings ratio than Kinross Gold, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
US Gold has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.
Profitability
This table compares US Gold and Kinross Gold’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
US Gold | N/A | -96.02% | -57.53% |
Kinross Gold | 25.18% | 20.04% | 13.11% |
Summary
Kinross Gold beats US Gold on 10 of the 13 factors compared between the two stocks.
About US 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 Kinross Gold
Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.
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