Critical Review: Osisko Gold Royalties (NYSE:OR) vs. U.S. GoldMining (NASDAQ:USGO)

Osisko Gold Royalties (NYSE:OR) and U.S. GoldMining (NASDAQ:USGO) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Osisko Gold Royalties	-19.34%	6.78%	5.60%
U.S. GoldMining	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osisko Gold Royalties	0	2	0	0	2.00
U.S. GoldMining	0	0	1	0	3.00

Osisko Gold Royalties presently has a consensus target price of $20.50, suggesting a potential upside of 27.57%. U.S. GoldMining has a consensus target price of $23.00, suggesting a potential upside of 280.17%. Given U.S. GoldMining’s stronger consensus rating and higher possible upside, analysts clearly believe U.S. GoldMining is more favorable than Osisko Gold Royalties.

Institutional and Insider Ownership

68.5% of Osisko Gold Royalties shares are owned by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are owned by institutional investors. 0.6% of Osisko Gold Royalties shares are owned by insiders. Comparatively, 2.0% of U.S. GoldMining shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Osisko Gold Royalties 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
Osisko Gold Royalties	$247.32 million	12.08	-$35.81 million	($0.19)	-84.58
U.S. GoldMining	N/A	N/A	-$9.36 million	N/A	N/A

U.S. GoldMining has lower revenue, but higher earnings than Osisko Gold Royalties.

Summary

U.S. GoldMining beats Osisko Gold Royalties on 6 of the 10 factors compared between the two stocks.

About Osisko Gold Royalties

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company's primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, 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.