Analyzing AngloGold Ashanti (NYSE:AU) and Augusta Gold (OTCMKTS:AUGG)

AngloGold Ashanti (NYSE:AU) and Augusta Gold (OTCMKTS:AUGG) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Profitability

This table compares AngloGold Ashanti and Augusta Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AngloGold Ashanti	26.25%	24.01%	15.59%
Augusta Gold	N/A	-34.03%	-12.24%

Analyst Ratings

This is a summary of current ratings and recommmendations for AngloGold Ashanti and Augusta Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AngloGold Ashanti	1	0	6	1	2.88
Augusta Gold	0	0	0	0	0.00

AngloGold Ashanti currently has a consensus price target of $95.00, suggesting a potential downside of 8.52%. Given AngloGold Ashanti’s stronger consensus rating and higher probable upside, equities research analysts plainly believe AngloGold Ashanti is more favorable than Augusta Gold.

Volatility and Risk

AngloGold Ashanti has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Augusta Gold has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares AngloGold Ashanti and Augusta Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AngloGold Ashanti	$5.79 billion	N/A	$1.00 billion	$4.54	22.87
Augusta Gold	N/A	N/A	-$6.59 million	($0.09)	-13.51

AngloGold Ashanti has higher revenue and earnings than Augusta Gold. Augusta Gold is trading at a lower price-to-earnings ratio than AngloGold Ashanti, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

36.1% of AngloGold Ashanti shares are held by institutional investors. Comparatively, 52.4% of Augusta Gold shares are held by institutional investors. 45.8% of Augusta Gold shares are held by company 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

AngloGold Ashanti beats Augusta Gold on 11 of the 14 factors compared between the two stocks.

About AngloGold Ashanti

AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.

About Augusta Gold

Augusta Gold Corp. engages in the acquisition and exploration of mineral properties in the United States. The company primarily explores for gold, silver, and other metals. It holds interests in the Bullfrog gold project consists of 734 unpatented lode mining claims and mill site claims, and 87 patented mining claims located in the Bullfrog Hills of Nye County, Nevada; and the Reward Gold Project comprises 123 unpatented Bureau of Land Management (BLM) placer and lode mining claims, and six patented placer mining claims covering approximately 2,333 acres located in Nye County, Nevada. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. is headquartered in Vancouver, Canada.