Contrasting Augusta Gold (OTCMKTS:AUGG) and DRDGOLD (NYSE:DRD)

DRDGOLD (NYSE:DRD) and Augusta Gold (OTCMKTS:AUGG) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DRDGOLD	N/A	N/A	N/A
Augusta Gold	N/A	-29.28%	-11.48%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for DRDGOLD and Augusta Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DRDGOLD	0	0	2	1	3.33
Augusta Gold	0	0	0	0	0.00

DRDGOLD presently has a consensus target price of $30.50, suggesting a potential upside of 2.54%. Given DRDGOLD’s stronger consensus rating and higher probable upside, research analysts clearly believe DRDGOLD is more favorable than Augusta Gold.

Valuation & Earnings

This table compares DRDGOLD 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
DRDGOLD	$433.84 million	5.93	$123.57 million	$1.26	23.61
Augusta Gold	N/A	N/A	-$6.59 million	($0.08)	-15.00

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

Volatility & Risk

DRDGOLD has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Augusta Gold has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Institutional & Insider Ownership

14.7% of DRDGOLD shares are owned by institutional investors. Comparatively, 52.4% of Augusta Gold shares are owned by institutional investors. 1.0% of DRDGOLD shares are owned by insiders. Comparatively, 45.8% of Augusta Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

DRDGOLD beats Augusta Gold on 10 of the 13 factors compared between the two stocks.

About DRDGOLD

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. It also involved in the exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGOLD Limited was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited is a subsidiary of Sibanye Gold Limited.

About Augusta Gold

Augusta Gold Corp. engages in the acquisition and exploration of mineral properties in the United States. The company primarily explores for gold, silver, and other metals. It holds interests in the Bullfrog gold project consists of 734 unpatented lode mining claims and mill site claims, and 87 patented mining claims located in the Bullfrog Hills of Nye County, Nevada; and the Reward Gold Project comprises 123 unpatented Bureau of Land Management (BLM) placer and lode mining claims, and six patented placer mining claims covering approximately 2,333 acres located in Nye County, Nevada. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. is headquartered in Vancouver, Canada.