US Gold (NASDAQ:USAU – Get Free Report) and Franco-Nevada (NYSE:FNV – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Valuation & Earnings
This table compares US Gold and Franco-Nevada”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| US Gold | N/A | N/A | -$6.90 million | ($1.36) | -9.34 |
| Franco-Nevada | $1.11 billion | 28.64 | $552.10 million | $3.20 | 51.73 |
Volatility & Risk
US Gold has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
Insider and Institutional Ownership
6.6% of US Gold shares are owned by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are owned by institutional investors. 11.1% of US Gold shares are owned by insiders. Comparatively, 0.7% of Franco-Nevada 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.
Profitability
This table compares US Gold and Franco-Nevada’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Gold | N/A | -79.36% | -54.15% |
| Franco-Nevada | 50.39% | 11.40% | 10.82% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for US Gold and Franco-Nevada, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Gold | 0 | 0 | 3 | 0 | 3.00 |
| Franco-Nevada | 0 | 6 | 7 | 0 | 2.54 |
US Gold currently has a consensus target price of $14.33, indicating a potential upside of 12.86%. Franco-Nevada has a consensus target price of $172.13, indicating a potential upside of 3.98%. Given US Gold’s stronger consensus rating and higher possible upside, equities analysts clearly believe US Gold is more favorable than Franco-Nevada.
Summary
Franco-Nevada beats US Gold on 9 of the 13 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 Franco-Nevada
Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.
Receive News & Ratings for US Gold Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for US Gold and related companies with MarketBeat.com's FREE daily email newsletter.
