Analyzing U.S. GoldMining (NASDAQ:USGO) and Fresnillo (OTCMKTS:FNLPF)

U.S. GoldMining (NASDAQ:USGO) and Fresnillo (OTCMKTS:FNLPF) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares U.S. GoldMining and Fresnillo’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%
Fresnillo	N/A	N/A	N/A

Valuation and Earnings

This table compares U.S. GoldMining and Fresnillo”s revenue, earnings per share (EPS) 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
Fresnillo	$2.71 billion	2.32	$233.91 million	N/A	N/A

Fresnillo has higher revenue and earnings than U.S. GoldMining.

Risk & Volatility

U.S. GoldMining has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500. Comparatively, Fresnillo has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. GoldMining	0	0	1	0	3.00
Fresnillo	0	1	0	1	3.00

U.S. GoldMining presently has a consensus target price of $24.00, indicating a potential upside of 117.59%. Given U.S. GoldMining’s higher possible upside, equities research analysts clearly believe U.S. GoldMining is more favorable than Fresnillo.

Institutional and Insider Ownership

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

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 Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.