Financial Comparison: TRX Gold (NYSE:TRX) vs. Mexus Gold US (OTCMKTS:MXSG)

TRX Gold (NYSE:TRX) and Mexus Gold US (OTCMKTS:MXSG) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability

This table compares TRX Gold and Mexus Gold US’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%
Mexus Gold US	N/A	N/A	N/A

Volatility and Risk

TRX Gold has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Mexus Gold US has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

1.1% of TRX Gold shares are held by institutional investors. 2.3% of TRX Gold shares are held by company insiders. Comparatively, 8.6% of Mexus Gold US shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for TRX Gold and Mexus Gold US, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TRX Gold	0	0	1	0	3.00
Mexus Gold US	0	0	0	0	0.00

TRX Gold currently has a consensus target price of $1.10, suggesting a potential upside of 115.69%. Given TRX Gold’s stronger consensus rating and higher possible upside, equities analysts plainly believe TRX Gold is more favorable than Mexus Gold US.

Valuation & Earnings

This table compares TRX Gold and Mexus Gold US”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TRX Gold	$47.73 million	3.04	-$470,000.00	N/A	N/A
Mexus Gold US	N/A	N/A	-$1.80 million	N/A	N/A

TRX Gold has higher revenue and earnings than Mexus Gold US.

Summary

TRX Gold beats Mexus Gold US on 9 of the 11 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 Mexus Gold US

Mexus Gold US, an exploration stage mining company, engages in the evaluation, acquisition, exploration, and advancement of gold, silver, copper, and other precious metal projects in the United Mexican States. The company holds 100% interest in the Santa Elena prospect comprising 9 concessions covering an area of approximately 6500 acres located to the northwest of Caborca, Sonora State; and 90% interest in the Mabel Property covering an area of approximately 2,128 hectares located to the southwest of Nogales, Sonora State. It also owns mineral rights to Ures Property comprising 9 concessions covering an area of approximately 10,000 acres located in Sonora State, Mexico. The company was formerly known as Action Fashions, Ltd. and changed its name to Mexus Gold US in September 2009. Mexus Gold US was incorporated in 1990 and is based in Carson City, Nevada.