Analyzing US Gold (NASDAQ:USAU) & Theta Gold Mines (OTCMKTS:TGMGF)

Theta Gold Mines (OTCMKTS:TGMGF) and US Gold (NASDAQ:USAU) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Theta Gold Mines and US Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Theta Gold Mines	0	0	0	0	0.00
US Gold	1	1	2	0	2.25

US Gold has a consensus target price of $26.75, indicating a potential upside of 50.96%. Given US Gold’s stronger consensus rating and higher probable upside, analysts plainly believe US Gold is more favorable than Theta Gold Mines.

Institutional and Insider Ownership

6.6% of US Gold shares are owned by institutional investors. 8.8% of US Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Theta Gold Mines and US Gold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Theta Gold Mines	N/A	N/A	N/A	N/A	N/A
US Gold	N/A	N/A	-$20.56 million	($1.45)	-12.22

Volatility and Risk

Theta Gold Mines has a beta of -1.99, indicating that its stock price is 299% less volatile than the S&P 500. Comparatively, US Gold has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Theta Gold Mines	N/A	N/A	N/A
US Gold	N/A	-51.92%	-44.32%

Summary

US Gold beats Theta Gold Mines on 6 of the 8 factors compared between the two stocks.

About Theta Gold Mines

Theta Gold Mines Limited operates as a gold exploration and development company in South Africa. Its principal property is the Theta project located near the town of Pilgrim’s Rest in Mpumalanga Province. The company was formerly known as Stonewall Resources Limited and changed its name to Theta Gold Mines Limited in December 2018. The company was incorporated in 2008 and is based in Sydney, Australia.

About US Gold

U.S. Gold Corp. engages in the exploration and development of gold and precious metals in the United States. It also explores for copper and silver deposits. The company holds 100% interests in the CK Gold project, which consists of various mining leases and other mineral rights covering approximately 1,120 acres in Laramie County, Wyoming; the Keystone project that consists of 601 unpatented lode mining claims covering approximately 20 square miles in Eureka County, Nevada; and the Challis Gold project, which consists of 77 unpatented lode mining claims covering approximately 1,710 acres in Lemhi County, Idaho. It also has earn-in agreement to acquire a 50% ownership interest in the Maggie Creek project located in Eureka County, Nevada. The company was formerly known as Dataram Corporation and changed its name to U.S. Gold Corp. in June 2017. U.S. Gold Corp. is based in Elko, Nevada.