Reviewing Minco Capital (OTCMKTS:MGHCF) & U.S. GoldMining (NASDAQ:USGO)

Minco Capital (OTCMKTS:MGHCF) and U.S. GoldMining (NASDAQ:USGO) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Minco Capital and U.S. GoldMining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minco Capital	0	0	0	0	0.00
U.S. GoldMining	0	0	1	0	3.00

U.S. GoldMining has a consensus price target of $26.50, indicating a potential upside of 187.73%. Given U.S. GoldMining’s stronger consensus rating and higher probable upside, analysts plainly believe U.S. GoldMining is more favorable than Minco Capital.

Volatility and Risk

Minco Capital has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Profitability

This table compares Minco Capital and U.S. GoldMining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minco Capital	N/A	10.65%	10.32%
U.S. GoldMining	N/A	-196.04%	-163.85%

Valuation and Earnings

This table compares Minco Capital and U.S. GoldMining”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minco Capital	N/A	N/A	-$290,000.00	$0.01	4.85
U.S. GoldMining	N/A	N/A	-$8.48 million	($0.66)	-13.95

U.S. GoldMining is trading at a lower price-to-earnings ratio than Minco Capital, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.5% of U.S. GoldMining shares are held by institutional investors. 2.5% of U.S. GoldMining shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

U.S. GoldMining beats Minco Capital on 6 of the 11 factors compared between the two stocks.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.

About U.S. GoldMining

U.S. GoldMining Inc., an exploration stage company, engages in the exploration and development of mineral properties in the United States. The company's primary asset is the 100%-owned Whistler exploration property, a gold-copper exploration project comprising mining claims totaling 53,700 acres located in Yentna Mining District, Alaska. The company was incorporated in 2015 and is based in Vancouver, Canada. U.S. GoldMining Inc. operates as a subsidiary of GoldMining Inc.