US Gold (NASDAQ:USAU) and NetApp (NASDAQ:NTAP) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
1.9% of US Gold shares are held by institutional investors. Comparatively, 97.1% of NetApp shares are held by institutional investors. 12.1% of US Gold shares are held by company insiders. Comparatively, 0.3% of NetApp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
US Gold has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, NetApp has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
NetApp pays an annual dividend of $1.92 per share and has a dividend yield of 3.5%. US Gold does not pay a dividend. NetApp pays out 47.8% of its earnings in the form of a dividend. NetApp has raised its dividend for 5 consecutive years.
This is a breakdown of recent recommendations for US Gold and NetApp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
US Gold currently has a consensus target price of $3.00, indicating a potential upside of 197.03%. NetApp has a consensus target price of $60.31, indicating a potential upside of 10.65%. Given US Gold’s stronger consensus rating and higher probable upside, analysts plainly believe US Gold is more favorable than NetApp.
Valuation and Earnings
This table compares US Gold and NetApp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|US Gold||N/A||N/A||-$8.05 million||($0.44)||-2.30|
|NetApp||$6.15 billion||2.11||$1.17 billion||$4.02||13.56|
NetApp has higher revenue and earnings than US Gold. US Gold is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.
This table compares US Gold and NetApp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NetApp beats US Gold on 12 of the 16 factors compared between the two stocks.
US Gold Company Profile
U.S. Gold Corp. operates as a gold exploration and development company in the United States. It has a portfolio of development and exploration properties. The company's properties include the Copper King project, an advanced stage gold and copper exploration and development project located in southeast Wyoming; Keystone project, an exploration property on the Cortez Trend in Nevada; and the Gold Bar North project, a gold exploration property located in Eureka County, Nevada. The company is based in Elko, Nevada.
NetApp Company Profile
NetApp, Inc. provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide. It offers cloud data services, such as ONTAP cloud storage data management and NetApp cloud sync data synchronization services; NetApp SaaS backup for Microsoft Office 365; NetApp cloud backup solutions; OnCommand management software and management integration tools; and NetApp private storage for cloud. The company also provides cloud Infrastructure solutions, including FlexPod, a portfolio of pre-validated designs and integration; NetApp advisor converged systems; NetApp HCI enterprise-scale hyper converged cloud infrastructure; and NetApp StorageGRID Webscale object storage software. In addition, it offers storage systems and software, such as all-flash arrays that support data management; hybrid arrays to deploy the speed of flash storage; NetApp ONTAP storage operating system; NetApp ONTAP Select, which offers robust enterprise storage services; NetApp flex array storage virtualization software; NetApp SnapCenter backup management software; NetApp SnapMirror data replication software; NetApp MetroCluster business continuity software; NetApp SnapLock data compliance software; SANtricity storage operating system; and NetApp SolidFire element operating systems. In addition, it provides software and hardware maintenance, professional, and customer education and training services, as well as support solutions. The company serves energy, financial services, government, high technology, Internet, life sciences, healthcare services, manufacturing, media, entertainment, animation, video postproduction, and telecommunications sectors through a direct sales force and channel partners. NetApp, Inc. has a strategic partnership with Lenovo to help customers modernize IT and enhance their digital transformation. NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California.
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