TRX Gold (NYSE:TRX) versus U.S. GoldMining (NASDAQ:USGO) Financial Review

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

Earnings & Valuation

This table compares TRX Gold 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
TRX Gold	$41.16 million	2.24	-$470,000.00	N/A	N/A
U.S. GoldMining	N/A	N/A	-$9.36 million	N/A	N/A

TRX Gold has higher revenue and earnings than U.S. GoldMining.

Risk & Volatility

TRX Gold has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.87, meaning that its stock price is 187% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TRX Gold and U.S. GoldMining, as reported by MarketBeat.

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

TRX Gold currently has a consensus target price of $1.63, suggesting a potential upside of 396.94%. U.S. GoldMining has a consensus target price of $26.50, suggesting a potential upside of 124.96%. Given TRX Gold’s higher possible upside, analysts plainly believe TRX Gold is more favorable than U.S. GoldMining.

Institutional & Insider Ownership

1.1% of TRX Gold shares are held by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are held by institutional investors. 2.3% of TRX Gold shares are held by company insiders. Comparatively, 2.0% of U.S. GoldMining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TRX Gold	6.11%	2.21%	1.51%
U.S. GoldMining	N/A	-71.04%	-65.02%

Summary

TRX Gold beats U.S. GoldMining on 9 of the 10 factors compared between the two stocks.

About TRX Gold

TRX Gold Corporation engages in the exploration, development, and production of mineral property interests in the United Republic of Tanzania. The company primarily explores for gold deposits. It holds interests in the Buckreef gold project that comprises a single Special Mining License covering an area of 16.04 square kilometers and 12 Prospecting Licenses covering 98.19 square kilometers located in north-central Tanzania. The company was formerly known as Tanzanian Gold Corporation and changed its name to TRX Gold Corporation in May 2022. TRX Gold Corporation was incorporated in 1990 and is based in Oakville, 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.