Head to Head Review: Dakota Gold (NYSE:DC) versus Fortescue (OTCMKTS:FSUGY)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Fortescue and Dakota Gold, as reported by MarketBeat.

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

Dakota Gold has a consensus target price of $6.00, suggesting a potential upside of 139.04%. Given Dakota Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Dakota Gold is more favorable than Fortescue.

Insider and Institutional Ownership

37.4% of Dakota Gold shares are held by institutional investors. 26.0% of Dakota Gold shares are held 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.

Profitability

This table compares Fortescue and Dakota Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortescue	N/A	N/A	N/A
Dakota Gold	N/A	-36.15%	-34.58%

Volatility and Risk

Fortescue has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Dakota Gold has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares Fortescue and Dakota Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortescue	$18.22 billion	2.22	$5.68 billion	N/A	N/A
Dakota Gold	N/A	N/A	-$36.45 million	($0.41)	-6.12

Fortescue has higher revenue and earnings than Dakota Gold.

Summary

Dakota Gold beats Fortescue on 5 of the 9 factors compared between the two stocks.

About Fortescue

Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It explores for copper, gold, and lithium deposits; and rare earth elements. The company provides port towage services; owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia. The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in East Perth, Australia.

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.