U.S. GoldMining (NASDAQ:USGO) and Allied Gold (NYSE:AAUC) Head to Head Review

Allied Gold (NYSE:AAUC) and U.S. GoldMining (NASDAQ:USGO) 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 dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

0.5% of U.S. GoldMining shares are held by institutional investors. 2.5% of U.S. GoldMining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allied Gold	-3.58%	24.32%	7.40%
U.S. GoldMining	N/A	-196.04%	-163.85%

Earnings & Valuation

This table compares Allied Gold and U.S. GoldMining”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gold	$730.38 million	2.60	-$115.63 million	($0.36)	-42.76
U.S. GoldMining	N/A	N/A	-$8.48 million	($0.66)	-15.55

U.S. GoldMining has lower revenue, but higher earnings than Allied Gold. Allied Gold is trading at a lower price-to-earnings ratio than U.S. GoldMining, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Allied Gold and U.S. GoldMining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gold	1	1	0	1	2.33
U.S. GoldMining	1	0	1	0	2.00

U.S. GoldMining has a consensus target price of $26.50, indicating a potential upside of 158.28%. Given U.S. GoldMining’s higher possible upside, analysts plainly believe U.S. GoldMining is more favorable than Allied Gold.

Summary

U.S. GoldMining beats Allied Gold on 7 of the 13 factors compared between the two stocks.

About Allied Gold

Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in 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.