Head-To-Head Analysis: Newmont (NYSE:NEM) versus Augusta Gold (OTCMKTS:AUGG)

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

Profitability

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

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Newmont and Augusta Gold, as reported by MarketBeat.com.

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

Newmont currently has a consensus price target of $99.35, suggesting a potential downside of 12.98%. Given Newmont’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Newmont is more favorable than Augusta Gold.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmont	$18.68 billion	6.67	$3.35 billion	$6.44	17.73
Augusta Gold	N/A	N/A	-$6.59 million	($0.09)	-13.51

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.

Insider and Institutional Ownership

68.9% of Newmont shares are owned by institutional investors. Comparatively, 52.4% of Augusta Gold shares are owned by institutional investors. 0.1% of Newmont shares are owned by insiders. Comparatively, 45.8% of Augusta Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

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

Summary

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

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.

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.