New Found Gold (NYSE:NFGC) versus Mexus Gold US (OTCMKTS:MXSG) Critical Review

Mexus Gold US (OTCMKTS:MXSG) and New Found Gold (NYSE:NFGC) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Mexus Gold US and New Found Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mexus Gold US	N/A	N/A	N/A
New Found Gold	N/A	-82.80%	-68.88%

Volatility & Risk

Mexus Gold US has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, New Found Gold has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

3.4% of New Found Gold shares are held by institutional investors. 8.6% of Mexus Gold US shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Mexus Gold US and New Found Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mexus Gold US	N/A	N/A	-$1.80 million	N/A	N/A
New Found Gold	N/A	N/A	-$59.18 million	($0.19)	-8.32

Analyst Ratings

This is a summary of recent recommendations and price targets for Mexus Gold US and New Found Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mexus Gold US	0	0	0	0	0.00
New Found Gold	0	0	1	0	3.00

New Found Gold has a consensus price target of $5.00, indicating a potential upside of 216.46%. Given New Found Gold’s stronger consensus rating and higher possible upside, analysts clearly believe New Found Gold is more favorable than Mexus Gold US.

Summary

New Found Gold beats Mexus Gold US on 5 of the 9 factors compared between the two stocks.

About Mexus Gold US

Mexus Gold US, an exploration stage mining company, engages in the evaluation, acquisition, exploration, and advancement of gold, silver, copper, and other precious metal projects in the United Mexican States. The company holds 100% interest in the Santa Elena prospect comprising 9 concessions covering an area of approximately 6500 acres located to the northwest of Caborca, Sonora State; and 90% interest in the Mabel Property covering an area of approximately 2,128 hectares located to the southwest of Nogales, Sonora State. It also owns mineral rights to Ures Property comprising 9 concessions covering an area of approximately 10,000 acres located in Sonora State, Mexico. The company was formerly known as Action Fashions, Ltd. and changed its name to Mexus Gold US in September 2009. Mexus Gold US was incorporated in 1990 and is based in Carson City, Nevada.

About New Found Gold

New Found Gold Corp., a mineral exploration company, engages in the identification, evaluation, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. It primarily explores for gold deposit. The company holds 100% interests in the Queensway project that includes 96 mineral licenses and 6,659 claims covering an area of 166,475 hectares of land located near Gander, Newfoundland; and the Kingsway project located in Gander, Newfoundland. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.