McEwen Mining (NYSE:MUX – Get Free Report) and U.S. GoldMining (NASDAQ:USGO – Get Free Report) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Risk & Volatility
McEwen Mining has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.
Valuation and Earnings
This table compares McEwen Mining and U.S. GoldMining”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
McEwen Mining | $166.23 million | 2.57 | $55.30 million | $2.19 | 3.69 |
U.S. GoldMining | N/A | N/A | -$9.36 million | N/A | N/A |
Institutional & Insider Ownership
17.0% of McEwen Mining shares are held by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are held by institutional investors. 17.1% of McEwen Mining shares are held by company insiders. Comparatively, 2.0% of U.S. GoldMining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares McEwen Mining and U.S. GoldMining’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
McEwen Mining | 51.31% | 20.77% | 15.70% |
U.S. GoldMining | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent ratings and price targets for McEwen Mining and U.S. GoldMining, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
McEwen Mining | 0 | 0 | 2 | 0 | 3.00 |
U.S. GoldMining | 0 | 0 | 1 | 0 | 3.00 |
McEwen Mining presently has a consensus target price of $15.63, indicating a potential upside of 93.50%. U.S. GoldMining has a consensus target price of $24.00, indicating a potential upside of 176.50%. Given U.S. GoldMining’s higher possible upside, analysts clearly believe U.S. GoldMining is more favorable than McEwen Mining.
Summary
McEwen Mining beats U.S. GoldMining on 8 of the 10 factors compared between the two stocks.
About McEwen Mining
McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and 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.
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