Financial Analysis: Dakota Gold (NYSE:DC) versus Exxaro Resources (OTCMKTS:EXXAY)

Dakota Gold (NYSE:DC) and Exxaro Resources (OTCMKTS:EXXAY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Earnings and Valuation

This table compares Dakota Gold and Exxaro Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dakota Gold	N/A	N/A	-$36.45 million	($0.27)	-14.81
Exxaro Resources	$1.78 billion	1.63	$679.76 million	N/A	N/A

Exxaro Resources has higher revenue and earnings than Dakota Gold.

Risk and Volatility

Dakota Gold has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Exxaro Resources has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Dakota Gold and Exxaro Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dakota Gold	0	0	1	0	3.00
Exxaro Resources	0	0	0	0	0.00

Dakota Gold currently has a consensus price target of $10.50, indicating a potential upside of 162.50%. Given Dakota Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Dakota Gold is more favorable than Exxaro Resources.

Profitability

This table compares Dakota Gold and Exxaro Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dakota Gold	N/A	-37.64%	-35.60%
Exxaro Resources	N/A	N/A	N/A

Insider & Institutional Ownership

37.4% of Dakota Gold shares are held by institutional investors. 17.4% of Dakota Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Dakota Gold beats Exxaro Resources on 6 of the 10 factors compared between the two stocks.

About Dakota Gold

Dakota Gold Corp. engages in the acquisition, exploration, and development of mineral properties in the United States. It primarily explores for gold deposits. The company holds 100% interest in the Blind Gold, City Creek, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, South Lead/ Whistler Gulch, the Barrick Option, Richmond Hill and Homestake Paleoplacer Properties located in Homestake Mining District, South Dakota. Dakota Gold Corp. was incorporated in 2017 and is based in Lead, South Dakota.

About Exxaro Resources

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia. The company operates through Coal; Ferrous; Energy; and Other segments. It produces thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; offers gas-atomised ferrosilicon for use in separation plants, as well as iron ore; and operates two wind farms. The company was formerly known as Kumba Iron Ore Limited and changed its name to Exxaro Resources Limited in November 2006. The company is based in Pretoria, South Africa.