US Gold (NASDAQ:USAU – Get Free Report) and Agnico Eagle Mines (NYSE:AEM – Get Free Report) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Risk and Volatility
US Gold has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Agnico Eagle Mines has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
Profitability
This table compares US Gold and Agnico Eagle Mines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Gold | N/A | -73.81% | -50.64% |
| Agnico Eagle Mines | 30.63% | 13.79% | 9.66% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Gold | 0 | 0 | 3 | 0 | 3.00 |
| Agnico Eagle Mines | 0 | 3 | 7 | 5 | 3.13 |
US Gold currently has a consensus price target of $17.33, suggesting a potential upside of 9.57%. Agnico Eagle Mines has a consensus price target of $141.40, suggesting a potential downside of 15.34%. Given US Gold’s higher possible upside, equities analysts plainly believe US Gold is more favorable than Agnico Eagle Mines.
Insider and Institutional Ownership
6.6% of US Gold shares are owned by institutional investors. Comparatively, 68.3% of Agnico Eagle Mines shares are owned by institutional investors. 11.1% of US Gold shares are owned by insiders. Comparatively, 0.5% of Agnico Eagle Mines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares US Gold and Agnico Eagle Mines”s 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 | ($1.53) | -10.34 |
| Agnico Eagle Mines | $8.29 billion | 10.14 | $1.90 billion | $5.88 | 28.41 |
Agnico Eagle Mines has higher revenue and earnings than US Gold. US Gold is trading at a lower price-to-earnings ratio than Agnico Eagle Mines, indicating that it is currently the more affordable of the two stocks.
Summary
Agnico Eagle Mines beats US Gold on 11 of the 14 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 Agnico Eagle Mines
Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.
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