Head-To-Head Analysis: Kinross Gold (NYSE:KGC) and US Gold (NASDAQ:USAU)

Kinross Gold (NYSE:KGC) and US Gold (NASDAQ:USAU) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kinross Gold and US Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinross Gold	0	2	6	2	3.00
US Gold	0	0	3	0	3.00

Kinross Gold presently has a consensus price target of $20.0714, indicating a potential upside of 5.06%. US Gold has a consensus price target of $14.6667, indicating a potential upside of 19.34%. Given US Gold’s higher probable upside, analysts clearly believe US Gold is more favorable than Kinross Gold.

Institutional & Insider Ownership

63.7% of Kinross Gold shares are held by institutional investors. Comparatively, 6.6% of US Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by insiders. Comparatively, 11.1% of US Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Kinross Gold and US Gold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$5.15 billion	4.52	$948.80 million	$1.24	15.41
US Gold	N/A	N/A	-$20.56 million	($1.78)	-6.90

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

Risk & Volatility

Kinross Gold has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, US Gold has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares Kinross Gold and US Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinross Gold	25.18%	20.04%	13.11%
US Gold	N/A	-96.02%	-57.53%

Summary

Kinross Gold beats US Gold on 10 of the 13 factors compared between the two stocks.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.

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.