U.S. GoldMining (NASDAQ:USGO) vs. Fresnillo (OTCMKTS:FNLPF) Critical Review

Fresnillo (OTCMKTS:FNLPF) and U.S. GoldMining (NASDAQ:USGO) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Fresnillo and U.S. GoldMining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresnillo	$2.71 billion	2.26	$233.91 million	N/A	N/A
U.S. GoldMining	N/A	N/A	-$9.36 million	N/A	N/A

Fresnillo has higher revenue and earnings than U.S. GoldMining.

Analyst Recommendations

This is a summary of current ratings and target prices for Fresnillo and U.S. GoldMining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresnillo	0	1	0	1	3.00
U.S. GoldMining	0	0	1	0	3.00

U.S. GoldMining has a consensus target price of $24.00, suggesting a potential upside of 128.79%. Given U.S. GoldMining’s higher probable upside, analysts clearly believe U.S. GoldMining is more favorable than Fresnillo.

Risk & Volatility

Fresnillo has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fresnillo	N/A	N/A	N/A
U.S. GoldMining	N/A	-71.04%	-65.02%

About Fresnillo

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito silver mine situated in the state of Zacatecas; Ciénega gold mine located in the state of Durango; Herradura gold mine situated in the state of Sonora; Noche Buena gold mine located in the state of Sonora; San Julián silver-gold mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. It also leases mining equipment; produces gold/silver doré bars; and provides administrative services. The company was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc operates as a subsidiary of Industrias Peñoles, S.A.B. de C.V.

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.