Critical Contrast: US Gold (USAU) versus Compania de Minas Buenaventura SAA (BVN)

US Gold (NASDAQ:USAU) and Compania de Minas Buenaventura SAA (NYSE:BVN) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Dividends

Compania de Minas Buenaventura SAA pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. US Gold does not pay a dividend. Compania de Minas Buenaventura SAA pays out 37.5% of its earnings in the form of a dividend. Compania de Minas Buenaventura SAA has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for US Gold and Compania de Minas Buenaventura SAA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
US Gold 0 0 1 0 3.00
Compania de Minas Buenaventura SAA 2 1 2 0 2.00

US Gold presently has a consensus target price of $3.00, suggesting a potential upside of 151.42%. Compania de Minas Buenaventura SAA has a consensus target price of $18.00, suggesting a potential upside of 19.68%. Given US Gold’s stronger consensus rating and higher possible upside, analysts plainly believe US Gold is more favorable than Compania de Minas Buenaventura SAA.

Volatility and Risk

US Gold has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Compania de Minas Buenaventura SAA has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Insider & Institutional Ownership

1.2% of US Gold shares are owned by institutional investors. Comparatively, 60.3% of Compania de Minas Buenaventura SAA shares are owned by institutional investors. 9.8% of US Gold shares are owned by company insiders. Comparatively, 19.3% of Compania de Minas Buenaventura SAA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares US Gold and Compania de Minas Buenaventura SAA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
US Gold N/A -78.76% -76.31%
Compania de Minas Buenaventura SAA -0.87% 2.29% 1.66%

Earnings & Valuation

This table compares US Gold and Compania de Minas Buenaventura SAA’s 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 -$13.65 million N/A N/A
Compania de Minas Buenaventura SAA $1.17 billion 3.27 -$13.44 million $0.32 47.00

Compania de Minas Buenaventura SAA has higher revenue and earnings than US Gold.

Summary

Compania de Minas Buenaventura SAA beats US Gold on 9 of the 14 factors compared between the two stocks.

About US Gold

U.S. Gold Corp. operates as a gold exploration and development company in the United States. It has a portfolio of development and exploration properties. The company's properties include the Copper King project, an advanced stage gold and copper exploration and development project located in southeast Wyoming; Keystone project, an exploration property on the Cortez Trend in Nevada; and the Gold Bar North project, a gold exploration property located in Eureka County, Nevada. The company is based in Elko, Nevada.

About Compania de Minas Buenaventura SAA

Compañía de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, and processing of gold, silver, lead, zinc, and copper metals in Peru, the United States, Europe, and Asia. The company operates five operating mining units, including Uchucchacua, Orcopampa, Julcani, Mallay, and Tambomayo in Peru; and San Gabriel, a mining unit under development stage. It also owns interests in Colquijirca-Marcapunta, Tantahuatay, La Zanja, Yanacocha, Cerro Verde, Yumpag, Daniela, Ccelloccasa, San Gregorio, and Tambomayo mines, as well as Trapiche, a mining unit at the development stage. In addition, the company produces manganese sulphate, which is used in agriculture and mining industries. Further, it provides geological, engineering, design, and construction consulting services to the mining sector; electrical transmission services; and energy generation services through hydroelectric power plants, as well as processes chemicals. The company was founded in 1953 and is based in Lima, Peru.

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