TRX Gold (NYSE:TRX) and Gold Resource (NYSE:GORO) Critical Contrast

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

Volatility & Risk

TRX Gold has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Gold Resource has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Earnings and Valuation

This table compares TRX Gold and Gold Resource”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TRX Gold	$38.32 million	2.91	$2.25 million	N/A	N/A
Gold Resource	$81.18 million	0.18	-$16.02 million	($0.21)	-0.76

TRX Gold has higher earnings, but lower revenue than Gold Resource.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TRX Gold	-3.06%	-3.84%	-2.71%
Gold Resource	-51.93%	-27.52%	-13.63%

Institutional and Insider Ownership

1.1% of TRX Gold shares are held by institutional investors. Comparatively, 18.4% of Gold Resource shares are held by institutional investors. 2.3% of TRX Gold shares are held by insiders. Comparatively, 2.7% of Gold Resource shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for TRX Gold and Gold Resource, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TRX Gold	0	0	2	0	3.00
Gold Resource	0	0	1	0	3.00

TRX Gold currently has a consensus price target of $1.58, suggesting a potential upside of 293.55%. Gold Resource has a consensus price target of $1.75, suggesting a potential upside of 995.80%. Given Gold Resource’s higher probable upside, analysts clearly believe Gold Resource is more favorable than TRX Gold.

Summary

TRX Gold beats Gold Resource on 6 of the 11 factors compared between the two stocks.

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.

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.