Contrasting Mexus Gold US (OTCMKTS:MXSG) and Platinum Group Metals (NYSE:PLG)

Platinum Group Metals (NYSE:PLG) and Mexus Gold US (OTCMKTS:MXSG) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

16.3% of Platinum Group Metals shares are held by institutional investors. 0.0% of Platinum Group Metals shares are held by insiders. Comparatively, 8.6% of Mexus Gold US shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Platinum Group Metals and Mexus Gold US”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Platinum Group Metals	N/A	N/A	-$4.61 million	($0.06)	-22.33
Mexus Gold US	N/A	N/A	-$1.80 million	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Platinum Group Metals and Mexus Gold US, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Platinum Group Metals	0	1	0	0	2.00
Mexus Gold US	0	0	0	0	0.00

Given Mexus Gold US’s higher possible upside, analysts plainly believe Mexus Gold US is more favorable than Platinum Group Metals.

Profitability

This table compares Platinum Group Metals and Mexus Gold US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Platinum Group Metals	N/A	-10.13%	-9.69%
Mexus Gold US	N/A	N/A	N/A

Risk and Volatility

Platinum Group Metals has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Mexus Gold US has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Summary

Mexus Gold US beats Platinum Group Metals on 5 of the 8 factors compared between the two stocks.

About Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.

About Mexus Gold US

Mexus Gold US, an exploration stage mining company, engages in the evaluation, acquisition, exploration, and advancement of gold, silver, copper, and other precious metal projects in the United Mexican States. The company holds 100% interest in the Santa Elena prospect comprising 9 concessions covering an area of approximately 6500 acres located to the northwest of Caborca, Sonora State; and 90% interest in the Mabel Property covering an area of approximately 2,128 hectares located to the southwest of Nogales, Sonora State. It also owns mineral rights to Ures Property comprising 9 concessions covering an area of approximately 10,000 acres located in Sonora State, Mexico. The company was formerly known as Action Fashions, Ltd. and changed its name to Mexus Gold US in September 2009. Mexus Gold US was incorporated in 1990 and is based in Carson City, Nevada.