Analyzing Augusta Gold (OTCMKTS:BFGCD) & Vale (NYSE:VALE)

Vale (NYSE:VALE) and Augusta Gold (OTCMKTS:BFGCD) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Vale and Augusta Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vale	23.07%	22.23%	9.71%
Augusta Gold	N/A	N/A	N/A

Risk and Volatility

Vale has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Augusta Gold has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Vale and Augusta Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vale	1	4	7	0	2.50
Augusta Gold	0	0	0	0	N/A

Vale presently has a consensus price target of $16.15, indicating a potential upside of 54.03%. Given Vale’s higher probable upside, equities analysts clearly believe Vale is more favorable than Augusta Gold.

Institutional & Insider Ownership

21.9% of Vale shares are owned by institutional investors. 13.0% of Augusta Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Vale and Augusta Gold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vale	$42.06 billion	1.12	$7.98 billion	$1.81	5.79
Augusta Gold	N/A	N/A	N/A	($0.12)	-5.50

Vale has higher revenue and earnings than Augusta Gold. Augusta Gold is trading at a lower price-to-earnings ratio than Vale, indicating that it is currently the more affordable of the two stocks.

Summary

Vale beats Augusta Gold on 9 of the 11 factors compared between the two stocks.

About Vale

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services. The Energy Transition Materials segment produces and extracts nickel used to produce stainless steel, electric vehicles, and metal alloys; and its by-products, such as gold, silver, cobalt, precious metals, platinum, and others, as well as copper used in the construction sector to produce pipes and electrical wires. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.

About Augusta Gold

Augusta Gold Corp., a junior exploration company, engages in the acquisition and exploration of mineral properties in the United States. It primarily explores for gold, silver, and other metals. The company holds interests in the Bullfrog gold project located in the Bullfrog Hills of Nye County, Nevada. It also owns, controls, or has acquired mineral rights on Federal patented and unpatented mining claims in the state of Nevada for the purpose of exploration and potential development of metals on a total of approximately 7,800 acres of land. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.