New Gold (NYSE:NGD – Get Free Report) and Augusta Gold (OTCMKTS:BFGCD – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Risk and Volatility
New Gold has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Augusta Gold has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for New Gold and Augusta Gold, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Gold | 0 | 1 | 3 | 2 | 3.17 |
| Augusta Gold | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares New Gold and Augusta Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Gold | 2.33% | 9.38% | 3.87% |
| Augusta Gold | N/A | N/A | N/A |
Institutional & Insider Ownership
42.8% of New Gold shares are held by institutional investors. 0.2% of New Gold shares are held by insiders. Comparatively, 13.0% of Augusta Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares New Gold and Augusta Gold”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Gold | $861.50 million | 2.40 | -$64.50 million | $0.02 | 130.50 |
| Augusta Gold | N/A | N/A | N/A | ($0.12) | -7.50 |
Augusta Gold has lower revenue, but higher earnings 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.
Summary
New Gold beats Augusta Gold on 12 of the 13 factors compared between the two stocks.
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.
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.
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