Critical Analysis: Sigma Lithium (NASDAQ:SGML) and Augusta Gold (OTCMKTS:BFGCD)

Sigma Lithium (NASDAQ:SGML) and Augusta Gold (OTCMKTS:BFGCD) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Sigma Lithium and Augusta Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Lithium	0	0	2	0	3.00
Augusta Gold	0	0	0	0	0.00

Sigma Lithium currently has a consensus target price of $18.00, suggesting a potential upside of 48.39%. Given Sigma Lithium’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sigma Lithium is more favorable than Augusta Gold.

Insider & Institutional Ownership

64.9% of Sigma Lithium shares are owned by institutional investors. 48.6% of Sigma Lithium shares are owned by insiders. Comparatively, 13.0% of Augusta Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Sigma Lithium has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Augusta Gold has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sigma Lithium and Augusta Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Lithium	$192.85 million	7.00	-$28.33 million	($0.48)	-25.27
Augusta Gold	N/A	N/A	N/A	($0.12)	-7.08

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sigma Lithium	-36.85%	-38.04%	-13.30%
Augusta Gold	N/A	N/A	N/A

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.

About Augusta Gold

Augusta Gold Corp., a junior exploration company, engages in the acquisition and exploration of mineral properties in the United States. It primarily explores for gold, silver, and other metals. The company holds interests in the Bullfrog gold project located in the Bullfrog Hills of Nye County, Nevada. It also owns, controls, or has acquired mineral rights on Federal patented and unpatented mining claims in the state of Nevada for the purpose of exploration and potential development of metals on a total of approximately 7,800 acres of land. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.