Financial Analysis: Augusta Gold (OTCMKTS:BFGCD) and MP Materials (NYSE:MP)

Augusta Gold (OTCMKTS:BFGCD) and MP Materials (NYSE:MP) are both mining companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Augusta Gold and MP Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Augusta Gold	0	0	0	0	0.00
MP Materials	0	4	6	0	2.60

MP Materials has a consensus price target of $21.40, indicating a potential upside of 9.74%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts clearly believe MP Materials is more favorable than Augusta Gold.

Profitability

This table compares Augusta Gold and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Augusta Gold	N/A	N/A	N/A
MP Materials	-21.94%	-4.28%	-2.28%

Insider & Institutional Ownership

52.5% of MP Materials shares are owned by institutional investors. 13.0% of Augusta Gold shares are owned by insiders. Comparatively, 12.6% of MP Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Augusta Gold and MP Materials”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Augusta Gold	N/A	N/A	N/A	($0.12)	-6.33
MP Materials	$173.66 million	18.57	$24.31 million	($0.54)	-36.11

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

Risk & Volatility

Augusta Gold has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500.

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.

About MP Materials

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.