Verify Smart (OTCMKTS:VSMR) and U.S. Gold (NASDAQ:USAU) Financial Analysis

Verify Smart (OTCMKTS:VSMR) and U.S. Gold (NASDAQ:USAU) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Verify Smart	N/A	N/A	N/A
U.S. Gold	N/A	-59.61%	-42.24%

Volatility & Risk

Verify Smart has a beta of 3.51, suggesting that its share price is 251% more volatile than the S&P 500. Comparatively, U.S. Gold has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Verify Smart and U.S. Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verify Smart	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 29.07%. Given U.S. Gold’s stronger consensus rating and higher probable upside, analysts plainly believe U.S. Gold is more favorable than Verify Smart.

Valuation & Earnings

This table compares Verify Smart and U.S. Gold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verify Smart	$220,000.00	31.08	N/A	N/A	N/A
U.S. Gold	N/A	N/A	-$6.90 million	($1.00)	-8.91

Verify Smart has higher revenue and earnings than U.S. Gold.

Summary

U.S. Gold beats Verify Smart on 6 of the 10 factors compared between the two stocks.

About Verify Smart

Verify Smart Corp. provides wireless software solutions focused on IP fraud protection for secure authenticated transactions and celebrity services for fans interactions worldwide. The company's software solutions are delivered as Software as a Service model over the Internet, and allows its clients to access the company's application software and databases. Its products include VerifyNGo, which provides instant personal verification to combat fraud and identity theft through mobile device; and Prvii, a mobile communications service that enables celebrities to monetize their fan base via messaging channels. Verify Smart Corp. promotes its products and services across various markets, including consumer brands, financial services, sports/entertainment, governments, and educational institutions. The company was formerly known as Treasure Explorations Inc. and changed its name to Verify Smart Corp. in March 2009. Verify Smart Corp. was founded in 2006 and is based in Fernley, Nevada.

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.