U.S. Gold (NASDAQ:USAU) versus American Lithium (OTCMKTS:LIACF) Critical Contrast

American Lithium (OTCMKTS:LIACF) and U.S. Gold (NASDAQ:USAU) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Insider & Institutional Ownership

0.0% of American Lithium shares are owned by institutional investors. Comparatively, 6.6% of U.S. Gold shares are owned by institutional investors. 9.8% of U.S. Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares American Lithium and U.S. Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Lithium	N/A	N/A	-$18.80 million	($0.11)	-3.79
U.S. Gold	N/A	N/A	-$6.90 million	($1.00)	-6.17

U.S. Gold is trading at a lower price-to-earnings ratio than American Lithium, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for American Lithium and U.S. Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Lithium	0	0	0	0	0.00
U.S. Gold	0	0	2	1	3.33

U.S. Gold has a consensus price target of $11.50, suggesting a potential upside of 86.39%. Given U.S. Gold’s stronger consensus rating and higher possible upside, analysts plainly believe U.S. Gold is more favorable than American Lithium.

Profitability

This table compares American Lithium and U.S. Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Lithium	N/A	-16.28%	-15.96%
U.S. Gold	N/A	-42.74%	-32.16%

Volatility & Risk

American Lithium has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, U.S. Gold has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Summary

U.S. Gold beats American Lithium on 8 of the 12 factors compared between the two stocks.

About American Lithium

American Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Claystones project covering an area of approximately 5,052 hectares located in the town of Tonopah, Nevada; and the Falchani Lithium project and the Macusani Uranium project located in Puno, Peru. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is headquartered in Vancouver, Canada.

About U.S. Gold

U.S. Gold Corp. engages in the exploration and development of gold and precious metals in the United States. It also explores for copper and silver deposits. The company holds 100% interests in the CK Gold project, which consists of various mining leases and other mineral rights covering approximately 1,120 acres in Laramie County, Wyoming; the Keystone project that consists of 601 unpatented lode mining claims covering approximately 20 square miles in Eureka County, Nevada; and the Challis Gold project, which consists of 77 unpatented lode mining claims covering approximately 1,710 acres in Lemhi County, Idaho. It also has earn-in agreement to acquire a 50% ownership interest in the Maggie Creek project located in Eureka County, Nevada. The company was formerly known as Dataram Corporation and changed its name to U.S. Gold Corp. in June 2017. U.S. Gold Corp. is based in Elko, Nevada.