FORTESCUE METAL/S (OTCMKTS:FSUGY) and US Gold (NASDAQ:USAU) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

0.1% of FORTESCUE METAL/S shares are held by institutional investors. Comparatively, 2.3% of US Gold shares are held by institutional investors. 9.8% of US Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for FORTESCUE METAL/S and US Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FORTESCUE METAL/S 0 0 0 0 N/A
US Gold 0 0 1 0 3.00

US Gold has a consensus price target of $3.00, suggesting a potential upside of 206.12%. Given US Gold’s higher probable upside, analysts plainly believe US Gold is more favorable than FORTESCUE METAL/S.

Earnings & Valuation

This table compares FORTESCUE METAL/S and US Gold’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FORTESCUE METAL/S $6.89 billion 1.32 $879.00 million $0.69 8.48
US Gold $25.18 million 0.73 -$13.65 million N/A N/A

FORTESCUE METAL/S has higher revenue and earnings than US Gold.

Dividends

FORTESCUE METAL/S pays an annual dividend of $0.31 per share and has a dividend yield of 5.3%. US Gold does not pay a dividend. FORTESCUE METAL/S pays out 44.9% of its earnings in the form of a dividend.

Volatility and Risk

FORTESCUE METAL/S has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, US Gold has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Profitability

This table compares FORTESCUE METAL/S and US Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FORTESCUE METAL/S N/A N/A N/A
US Gold N/A -51.57% -49.72%

Summary

FORTESCUE METAL/S beats US Gold on 7 of the 12 factors compared between the two stocks.

About FORTESCUE METAL/S

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail and Kings Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. The company was founded in 2003 and is headquartered in East Perth, Australia.

About US Gold

U.S. Gold Corp., an exploration stage company, focuses on the exploration and development of gold and precious metals properties in the United States. It has interests in the Keystone and the Gold Bar projects located on the Cortez trend in Nevada; and the Copper King gold and copper project located in southeast Wyoming. The company is based in Elko, Nevada. U.S. Gold Corp. is a subsidiary of Copper King, LLC.

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