Analyzing Lithium Americas (Argentina) (NYSE:LAAC) and Augusta Gold (OTCMKTS:BFGCD)

Augusta Gold (OTCMKTS:BFGCD) and Lithium Americas (Argentina) (NYSE:LAAC) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Profitability

This table compares Augusta Gold and Lithium Americas (Argentina)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Augusta Gold	N/A	N/A	N/A
Lithium Americas (Argentina)	N/A	-1.37%	-1.08%

Risk and Volatility

Augusta Gold has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Lithium Americas (Argentina) has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Institutional and Insider Ownership

49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 13.0% of Augusta Gold shares are owned by insiders. Comparatively, 19.8% of Lithium Americas (Argentina) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Augusta Gold and Lithium Americas (Argentina)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Augusta Gold	N/A	N/A	N/A	($0.12)	-8.50
Lithium Americas (Argentina)	N/A	N/A	$1.29 billion	$7.79	0.27

Augusta Gold is trading at a lower price-to-earnings ratio than Lithium Americas (Argentina), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Augusta Gold and Lithium Americas (Argentina), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Augusta Gold	0	0	0	0	0.00
Lithium Americas (Argentina)	0	0	2	1	3.33

Lithium Americas (Argentina) has a consensus price target of $4.25, indicating a potential upside of 102.38%. Given Lithium Americas (Argentina)’s stronger consensus rating and higher probable upside, analysts clearly believe Lithium Americas (Argentina) is more favorable than Augusta Gold.

Summary

Lithium Americas (Argentina) beats Augusta Gold on 9 of the 11 factors compared between the two stocks.

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.

About Lithium Americas (Argentina)

Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.