Comparing 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 better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider 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 company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gold Royalty	$3.05 million	78.71	-$26.76 million	($0.13)	-10.92
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.

Volatility and Risk

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.

Analyst Recommendations

This is a breakdown of current ratings for Gold Royalty and U.S. GoldMining, as provided by MarketBeat.

	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, indicating a potential upside of 152.35%. U.S. GoldMining has a consensus target price of $24.00, indicating a potential upside of 143.16%. Given Gold Royalty’s higher probable upside, equities research analysts plainly believe Gold Royalty is more favorable than U.S. GoldMining.

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.