Allied Gold (NYSE:AAUC – Get Free Report) and US Gold (NASDAQ:USAU – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
Profitability
This table compares Allied Gold and US Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allied Gold | -3.58% | 24.45% | 7.06% |
| US Gold | N/A | -73.41% | -55.36% |
Institutional & Insider Ownership
6.6% of US Gold shares are held by institutional investors. 11.1% of US Gold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gold | $730.38 million | 5.38 | -$115.63 million | ($0.36) | -87.11 |
| US Gold | N/A | N/A | -$20.56 million | ($1.64) | -10.95 |
US Gold has lower revenue, but higher earnings than Allied Gold. Allied Gold is trading at a lower price-to-earnings ratio than US Gold, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Allied Gold and US Gold, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gold | 1 | 2 | 0 | 1 | 2.25 |
| US Gold | 1 | 1 | 2 | 0 | 2.25 |
US Gold has a consensus price target of $26.75, indicating a potential upside of 49.03%. Given US Gold’s higher probable upside, analysts clearly believe US Gold is more favorable than Allied Gold.
Summary
US Gold beats Allied Gold on 7 of the 12 factors compared between the two stocks.
About Allied Gold
Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in Canada.
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.
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