Analyzing U.S. GoldMining (NASDAQ:USGO) & Gold Royalty (NYSE:GROY)

Gold Royalty (NYSE:GROY) and U.S. GoldMining (NASDAQ:USGO) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Insider & Institutional Ownership

33.8% of Gold Royalty shares are owned by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are owned by institutional investors. 2.0% of U.S. GoldMining shares are owned 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 Recommendations

This is a summary of current ratings for Gold Royalty and U.S. GoldMining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gold Royalty	0	0	2	0	3.00
U.S. GoldMining	0	0	1	0	3.00

Gold Royalty presently has a consensus target price of $3.58, suggesting a potential upside of 166.42%. U.S. GoldMining has a consensus target price of $24.00, suggesting a potential upside of 136.69%. Given Gold Royalty’s higher possible upside, equities analysts plainly believe Gold Royalty is more favorable than U.S. GoldMining.

Earnings and Valuation

This table compares Gold Royalty and U.S. GoldMining”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$7.76 million	29.29	-$26.76 million	($0.13)	-10.35
U.S. GoldMining	N/A	N/A	-$9.36 million	N/A	N/A

U.S. GoldMining has lower revenue, but higher earnings than Gold Royalty.

Risk and Volatility

Gold Royalty has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.

Profitability

This table compares Gold Royalty and U.S. GoldMining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gold Royalty	-252.16%	0.46%	0.35%
U.S. GoldMining	N/A	N/A	N/A

Summary

Gold Royalty beats U.S. GoldMining on 6 of the 10 factors compared between the two stocks.

About Gold Royalty

Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.

About U.S. GoldMining

U.S. GoldMining Inc., an exploration stage company, engages in the exploration and development of mineral properties in the United States. The company's primary asset is the 100%-owned Whistler exploration property, a gold-copper exploration project comprising mining claims totaling 53,700 acres located in Yentna Mining District, Alaska. The company was incorporated in 2015 and is based in Vancouver, Canada. U.S. GoldMining Inc. operates as a subsidiary of GoldMining Inc.