Financial Review: Newmont (NYSE:NEM) & Augusta Gold (OTCMKTS:AUGG)

Augusta Gold (OTCMKTS:AUGG) and Newmont (NYSE:NEM) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Augusta Gold and Newmont, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Augusta Gold	0	0	0	0	0.00
Newmont	0	4	13	5	3.05

Newmont has a consensus target price of $97.08, suggesting a potential downside of 10.93%. Given Newmont’s stronger consensus rating and higher possible upside, analysts plainly believe Newmont is more favorable than Augusta Gold.

Institutional and Insider Ownership

52.4% of Augusta Gold shares are held by institutional investors. Comparatively, 68.9% of Newmont shares are held by institutional investors. 45.8% of Augusta Gold shares are held by company insiders. Comparatively, 0.1% of Newmont shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Augusta Gold has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Profitability

This table compares Augusta Gold and Newmont’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Augusta Gold	N/A	-34.03%	-12.24%
Newmont	33.42%	20.35%	11.68%

Earnings and Valuation

This table compares Augusta Gold and Newmont”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	-$6.59 million	($0.09)	-13.51
Newmont	$18.68 billion	6.37	$3.35 billion	$6.44	16.92

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

Summary

Newmont beats Augusta Gold on 12 of the 14 factors compared between the two stocks.

About Augusta Gold

Augusta Gold Corp. engages in the acquisition and exploration of mineral properties in the United States. The company primarily explores for gold, silver, and other metals. It holds interests in the Bullfrog gold project consists of 734 unpatented lode mining claims and mill site claims, and 87 patented mining claims located in the Bullfrog Hills of Nye County, Nevada; and the Reward Gold Project comprises 123 unpatented Bureau of Land Management (BLM) placer and lode mining claims, and six patented placer mining claims covering approximately 2,333 acres located in Nye County, Nevada. The company was formerly known as Bullfrog Gold Corp. and changed its name to Augusta Gold Corp. in January 2021. Augusta Gold Corp. is headquartered in Vancouver, Canada.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.