U.S. GoldMining (NASDAQ:USGO) and Gold Royalty (NYSE:GROY) Financial Contrast

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

Institutional and Insider Ownership

0.5% of U.S. GoldMining shares are held by institutional investors. Comparatively, 33.8% of Gold Royalty shares are held by institutional investors. 2.0% of U.S. GoldMining shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
U.S. GoldMining	N/A	N/A	N/A
Gold Royalty	-252.16%	0.46%	0.35%

Earnings and Valuation

This table compares U.S. GoldMining and Gold Royalty”s gross 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
Gold Royalty	$3.05 million	72.89	-$26.76 million	($0.13)	-10.12

U.S. GoldMining has higher earnings, but lower revenue than Gold Royalty.

Risk and Volatility

U.S. GoldMining has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Gold Royalty has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for U.S. GoldMining and Gold Royalty, as reported by MarketBeat.

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

U.S. GoldMining presently has a consensus target price of $24.00, suggesting a potential upside of 176.50%. Gold Royalty has a consensus target price of $3.58, suggesting a potential upside of 172.50%. Given U.S. GoldMining’s higher probable upside, research analysts plainly believe U.S. GoldMining is more favorable than Gold Royalty.

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 Gold Royalty

Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.