Critical Review: Gold Resource (NYSE:GORO) vs. Mexus Gold US (OTCMKTS:MXSG)

Gold Resource (NYSE:GORO) and Mexus Gold US (OTCMKTS:MXSG) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility and Risk

Gold Resource has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Mexus Gold US has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares Gold Resource and Mexus Gold US’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Resource	$97.73 million	0.35	-$16.02 million	($0.21)	-1.78
Mexus Gold US	N/A	N/A	-$2.58 million	N/A	N/A

Mexus Gold US has lower revenue, but higher earnings than Gold Resource.

Institutional & Insider Ownership

18.4% of Gold Resource shares are held by institutional investors. 2.7% of Gold Resource shares are held by company insiders. Comparatively, 8.6% of Mexus Gold US shares are held by company 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 summary of recent recommendations and price targets for Gold Resource and Mexus Gold US, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Resource	0	0	1	0	3.00
Mexus Gold US	0	0	0	0	N/A

Gold Resource currently has a consensus price target of $1.50, indicating a potential upside of 301.61%. Given Gold Resource’s higher possible upside, equities research analysts plainly believe Gold Resource is more favorable than Mexus Gold US.

Profitability

This table compares Gold Resource and Mexus Gold US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Resource	-22.30%	-19.21%	-10.17%
Mexus Gold US	N/A	N/A	N/A

About Gold Resource

Gold Resource Corporation engages in the exploration, development, and production of gold and silver projects in Mexico and the United States. The company also explores for copper, lead, and zinc deposits. Its principal assets are the 100% owned Don David gold mine and Back Forty project covering approximately 1,304 hectares located in Menominee county, Michigan. The company was incorporated in 1998 and is headquartered in Denver, Colorado.

About Mexus Gold US

Mexus Gold US, an exploration stage mining company, engages in the evaluation, acquisition, exploration, and advancement of gold, silver, copper, and other precious metal projects in the State of Sonora, Mexico. It holds interests in the Santa Elena prospect comprising seven concessions covering an area of 898.028 hectares located to the northwest of the city of Caborca, Sonora State, as well as the Mabel Property covering an area of 2,128 hectares located to the southwest of Nogales, Sonora State. The company was formerly known as Action Fashions, Ltd. and changed its name to Mexus Gold US in September 2009. Mexus Gold US was incorporated in 1990 and is based in Carson City, Nevada.