Augusta Gold (OTCMKTS:AUGG) & Kinross Gold (NYSE:KGC) Critical Review

Kinross Gold (NYSE:KGC) and Augusta Gold (OTCMKTS:AUGG) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares Kinross Gold and Augusta Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$6.07 billion	3.79	$948.80 million	$1.24	15.26
Augusta Gold	N/A	N/A	-$6.59 million	($0.07)	-17.24

Kinross Gold has higher revenue and earnings than Augusta Gold. Augusta 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.

Institutional & Insider Ownership

63.7% of Kinross Gold shares are held by institutional investors. Comparatively, 52.4% of Augusta Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by company insiders. Comparatively, 45.8% of Augusta Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kinross Gold and Augusta Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinross Gold	0	2	6	2	3.00
Augusta Gold	0	0	0	0	0.00

Kinross Gold currently has a consensus price target of $20.0714, indicating a potential upside of 6.04%. Given Kinross Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Kinross Gold is more favorable than Augusta Gold.

Profitability

This table compares Kinross Gold and Augusta Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinross Gold	25.18%	20.04%	13.11%
Augusta Gold	N/A	-28.29%	-11.51%

Risk & Volatility

Kinross Gold has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Augusta Gold has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Summary

Kinross Gold beats Augusta Gold on 13 of the 14 factors compared between the two stocks.

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.

About Augusta Gold

Augusta Gold Corp. engages in the acquisition and exploration of mineral properties in the United States. The company primarily explores for gold, silver, and other metals. It holds interests in the Bullfrog gold project consists of 734 unpatented lode mining claims and mill site claims, and 87 patented mining claims located in the Bullfrog Hills of Nye County, Nevada; and the Reward Gold Project comprises 123 unpatented Bureau of Land Management (BLM) placer and lode mining claims, and six patented placer mining claims covering approximately 2,333 acres located in Nye County, Nevada. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. is headquartered in Vancouver, Canada.