Augusta Gold (OTCMKTS:BFGCD – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both mining companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk & Volatility
Augusta Gold has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500.
Insider and Institutional Ownership
52.5% of MP Materials shares are held by institutional investors. 13.0% of Augusta Gold shares are held by insiders. Comparatively, 12.6% of MP Materials shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Augusta Gold | 0 | 0 | 0 | 0 | 0.00 |
MP Materials | 0 | 4 | 6 | 0 | 2.60 |
MP Materials has a consensus price target of $21.40, suggesting a potential upside of 15.30%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts plainly believe MP Materials is more favorable than Augusta Gold.
Profitability
This table compares Augusta Gold and MP Materials’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Augusta Gold | N/A | N/A | N/A |
MP Materials | -32.24% | -6.78% | -3.39% |
Valuation & Earnings
This table compares Augusta Gold and MP Materials”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Augusta Gold | N/A | N/A | N/A | ($0.12) | -5.03 |
MP Materials | $184.07 million | 16.68 | $24.31 million | ($0.54) | -34.37 |
MP Materials has higher revenue and earnings than Augusta Gold. MP Materials is trading at a lower price-to-earnings ratio than Augusta Gold, indicating that it is currently the more affordable of the two stocks.
About Augusta Gold
Augusta Gold Corp., a junior exploration company, engages in the acquisition and exploration of mineral properties in the United States. It primarily explores for gold, silver, and other metals. The company holds interests in the Bullfrog gold project located in the Bullfrog Hills of Nye County, Nevada. It also owns, controls, or has acquired mineral rights on Federal patented and unpatented mining claims in the state of Nevada for the purpose of exploration and potential development of metals on a total of approximately 7,800 acres of land. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.
About MP Materials
MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.
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