Augusta Gold (OTCMKTS:BFGCD – Get Free Report) and New Gold (NYSE:NGD – Get Free Report) are both mining companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Institutional & Insider Ownership
42.8% of New Gold shares are held by institutional investors. 13.0% of Augusta Gold shares are held by company insiders. Comparatively, 0.2% of New Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Augusta Gold and New Gold’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 |
| New Gold | 2.33% | 9.38% | 3.87% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Augusta Gold | N/A | N/A | N/A | ($0.12) | -7.07 |
| New Gold | $861.50 million | 2.52 | -$64.50 million | $0.02 | 137.00 |
Augusta Gold has higher earnings, but lower revenue than New Gold. Augusta Gold is trading at a lower price-to-earnings ratio than New Gold, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Augusta Gold has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, New Gold has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Augusta Gold and New Gold, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Augusta Gold | 0 | 0 | 0 | 0 | 0.00 |
| New Gold | 0 | 1 | 3 | 2 | 3.17 |
New Gold has a consensus price target of $3.41, suggesting a potential upside of 24.54%. Given New Gold’s stronger consensus rating and higher possible upside, analysts clearly believe New Gold is more favorable than Augusta Gold.
Summary
New Gold beats Augusta Gold on 12 of the 13 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 New Gold
New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.
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