US Gold (NASDAQ:USAU – Get Free Report) and Seabridge Gold (NYSE:SA – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Institutional and Insider Ownership
6.6% of US Gold shares are held by institutional investors. Comparatively, 34.9% of Seabridge Gold shares are held by institutional investors. 11.1% of US Gold shares are held by insiders. Comparatively, 12.8% of Seabridge Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for US Gold and Seabridge Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Gold | 1 | 0 | 3 | 0 | 2.50 |
| Seabridge Gold | 1 | 1 | 0 | 0 | 1.50 |
Earnings and Valuation
This table compares US Gold and Seabridge Gold”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| US Gold | N/A | N/A | -$20.56 million | ($1.53) | -11.52 |
| Seabridge Gold | N/A | N/A | -$22.80 million | ($0.38) | -68.99 |
Seabridge Gold is trading at a lower price-to-earnings ratio than US Gold, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
US Gold has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Profitability
This table compares US Gold and Seabridge Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Gold | N/A | -73.81% | -50.64% |
| Seabridge Gold | N/A | -4.94% | -3.00% |
Summary
US Gold beats Seabridge Gold on 6 of the 11 factors compared between the two stocks.
About US Gold
U.S. Gold Corp. engages in the exploration and development of gold and precious metals in the United States. It also explores for copper and silver deposits. The company holds 100% interests in the CK Gold project, which consists of various mining leases and other mineral rights covering approximately 1,120 acres in Laramie County, Wyoming; the Keystone project that consists of 601 unpatented lode mining claims covering approximately 20 square miles in Eureka County, Nevada; and the Challis Gold project, which consists of 77 unpatented lode mining claims covering approximately 1,710 acres in Lemhi County, Idaho. It also has earn-in agreement to acquire a 50% ownership interest in the Maggie Creek project located in Eureka County, Nevada. The company was formerly known as Dataram Corporation and changed its name to U.S. Gold Corp. in June 2017. U.S. Gold Corp. is based in Elko, Nevada.
About Seabridge Gold
Seabridge Gold Inc., together with its subsidiaries, engages in the acquisition and exploration of gold properties in North America. The company also explores for gold, copper, silver, and molybdenum deposits. The company was formerly known as Seabridge Resources Inc. and changed its name to Seabridge Gold Inc. in June 2002. Seabridge Gold Inc. was incorporated in 1979 and is based in Toronto, Canada.
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