Financial Comparison: Allied Gold (NYSE:AAUC) versus US Gold (NASDAQ:USAU)

US Gold (NASDAQ:USAU) and Allied Gold (NYSE:AAUC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for US Gold and Allied Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
US Gold	1	1	2	0	2.25
Allied Gold	1	2	0	1	2.25

US Gold presently has a consensus price target of $26.75, indicating a potential upside of 49.03%. Given US Gold’s higher possible upside, analysts clearly believe US Gold is more favorable than Allied Gold.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
US Gold	N/A	-73.41%	-55.36%
Allied Gold	-3.58%	24.45%	7.06%

Insider & Institutional Ownership

6.6% of US Gold shares are held by institutional investors. 11.1% of US Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares US Gold and Allied Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
US Gold	N/A	N/A	-$20.56 million	($1.64)	-10.95
Allied Gold	$730.38 million	5.38	-$115.63 million	($0.36)	-87.11

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

Summary

US Gold beats Allied Gold on 7 of the 12 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 Allied Gold

Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in Canada.