Critical Comparison: U.S. GoldMining (NASDAQ:USGO) versus Jaguar Mining (OTCMKTS:JAGGF)

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

Volatility & Risk

Jaguar Mining has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Valuation and Earnings

This table compares Jaguar Mining and U.S. GoldMining”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$158.63 million	2.87	-$1.29 million	($0.19)	-28.13
U.S. GoldMining	N/A	N/A	-$8.48 million	($0.53)	-18.68

Jaguar Mining has higher revenue and earnings than U.S. GoldMining. Jaguar Mining is trading at a lower price-to-earnings ratio than U.S. GoldMining, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.5% of U.S. GoldMining shares are owned by institutional investors. 0.6% of Jaguar Mining shares are owned by insiders. Comparatively, 2.5% of U.S. GoldMining shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jaguar Mining and U.S. GoldMining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
U.S. GoldMining	1	0	1	0	2.00

U.S. GoldMining has a consensus target price of $26.50, indicating a potential upside of 167.68%. Given U.S. GoldMining’s stronger consensus rating and higher probable upside, analysts clearly believe U.S. GoldMining is more favorable than Jaguar Mining.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	-10.83%	3.72%	2.55%
U.S. GoldMining	N/A	-175.80%	-145.28%

Summary

U.S. GoldMining beats Jaguar Mining on 8 of the 13 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, 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.