Financial Analysis: TRX Gold (NYSE:TRX) versus U.S. GoldMining (NASDAQ:USGO)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for U.S. GoldMining and TRX Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. GoldMining	0	0	1	0	3.00
TRX Gold	0	0	2	0	3.00

U.S. GoldMining currently has a consensus price target of $26.50, indicating a potential upside of 128.45%. TRX Gold has a consensus price target of $1.63, indicating a potential upside of 414.24%. Given TRX Gold’s higher probable upside, analysts clearly believe TRX Gold is more favorable than U.S. GoldMining.

Earnings and Valuation

This table compares U.S. GoldMining and TRX Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. GoldMining	N/A	N/A	-$9.36 million	N/A	N/A
TRX Gold	$41.16 million	2.16	-$470,000.00	N/A	N/A

TRX Gold has higher revenue and earnings than U.S. GoldMining.

Institutional & Insider Ownership

0.5% of U.S. GoldMining shares are owned by institutional investors. Comparatively, 1.1% of TRX Gold shares are owned by institutional investors. 2.0% of U.S. GoldMining shares are owned by insiders. Comparatively, 2.3% of TRX Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

U.S. GoldMining has a beta of 2.87, meaning that its share price is 187% more volatile than the S&P 500. Comparatively, TRX Gold has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
U.S. GoldMining	N/A	-71.04%	-65.02%
TRX Gold	6.11%	2.21%	1.51%

Summary

TRX Gold beats U.S. GoldMining on 9 of the 10 factors compared between the two stocks.

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.

About TRX Gold

TRX Gold Corporation engages in the exploration, development, and production of mineral property interests in the United Republic of Tanzania. The company primarily explores for gold deposits. It holds interests in the Buckreef gold project that comprises a single Special Mining License covering an area of 16.04 square kilometers and 12 Prospecting Licenses covering 98.19 square kilometers located in north-central Tanzania. The company was formerly known as Tanzanian Gold Corporation and changed its name to TRX Gold Corporation in May 2022. TRX Gold Corporation was incorporated in 1990 and is based in Oakville, Canada.