US Gold (NASDAQ:USAU) and Seagate Technology (NASDAQ:STX) 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, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Seagate Technology pays an annual dividend of $2.52 per share and has a dividend yield of 5.5%. US Gold does not pay a dividend. Seagate Technology pays out 52.3% of its earnings in the form of a dividend.
This table compares US Gold and Seagate Technology’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|US Gold||N/A||N/A||-$8.05 million||($0.44)||-2.25|
|Seagate Technology||$10.39 billion||1.19||$2.01 billion||$4.82||9.55|
Seagate Technology has higher revenue and earnings than US Gold. US Gold is trading at a lower price-to-earnings ratio than Seagate Technology, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for US Gold and Seagate Technology, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
US Gold presently has a consensus target price of $3.00, indicating a potential upside of 203.03%. Seagate Technology has a consensus target price of $44.56, indicating a potential downside of 3.20%. Given US Gold’s stronger consensus rating and higher possible upside, research analysts clearly believe US Gold is more favorable than Seagate Technology.
Insider & Institutional Ownership
1.3% of US Gold shares are held by institutional investors. Comparatively, 87.9% of Seagate Technology shares are held by institutional investors. 9.8% of US Gold shares are held by insiders. Comparatively, 1.0% of Seagate Technology 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.
Volatility and Risk
US Gold has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Seagate Technology has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
This table compares US Gold and Seagate Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Seagate Technology beats US Gold on 11 of the 15 factors compared between the two stocks.
US Gold Company Profile
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.
Seagate Technology Company Profile
Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It manufactures and distributes hard disk drives; solid state drives (SSDs), including serial attached small computer system interface and non-volatile memory express SSDs; solid state hybrid drives; and storage subsystems. The company's products are used in enterprise servers and storage systems; edge compute/client compute applications, primarily for desktop and mobile computing; and edge non-compute/client non-compute applications, such as various end user devices comprising portable external storage systems, surveillance systems, digital video recorders, network-attached storages, and gaming consoles, as well as data centers. It also provides cloud systems and solutions portfolio that includes modular original equipment manufacturer (OEM) storage systems and scale-out storage servers. In addition, the company offers external storage solutions under the Seagate Backup Plus and Expansion product lines, as well as under the LaCie and Maxtor brands in capacities up to 120TB. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology plc was founded in 1979 and is headquartered in Dublin, Ireland.
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