Goldcorp (GG) against Mexus Gold US (MXSG) Critical Analysis

Goldcorp (GG) against Mexus Gold US (MXSG) Critical Analysis

Mexus Gold US (OTCMKTS:MXSG) and Goldcorp (NYSE:GG) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mexus Gold US and Goldcorp, as provided by MarketBeat.

Goldcorp has a consensus price target of $13.63, indicating a potential upside of 24.24%. Given Goldcorp’s higher possible upside, analysts clearly believe Goldcorp is more favorable than Mexus Gold US.

Earnings and Valuation

This table compares Mexus Gold US and Goldcorp’s gross revenue, earnings per share and valuation.

Goldcorp has higher revenue and earnings than Mexus Gold US.

Institutional and Insider Ownership

54.4% of Goldcorp shares are held by institutional investors. 9.0% of Mexus Gold US shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Mexus Gold US does not pay a dividend. Goldcorp pays out 20.0% of its earnings in the form of a dividend.

Risk & Volatility

Mexus Gold US has a beta of 2.66, indicating that its share price is 166% more volatile than the S&P 500. Comparatively, Goldcorp has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Mexus Gold US and Goldcorp’s net margins, return on equity and return on assets.

Summary

Goldcorp beats Mexus Gold US on 9 of the 13 factors compared between the two stocks.

About Mexus Gold US

Mexus Gold US, an exploration stage mining company, engages in the evaluation, acquisition, exploration, and advancement of gold, silver, copper, and other precious metal projects in the State of Sonora, Mexico and the Western United States. The company holds interests in the Santa Elena prospect comprising 7 concessions covering an area of 898.028 hectares located to the northwest of the city of Caborca, Sonora State. It also holds interest in the Ures property covering 6900 acres located to the North of Hermosillo, Mexico. The company was formerly known as Action Fashions, Ltd. and changed its name to Mexus Gold US in September 2009. Mexus Gold US was incorporated in 1990 and is based in Carson City, Nevada.

About Goldcorp

Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. It primarily explores for gold, silver, lead, zinc, and copper deposits. The company's principal producing mining properties include the Éléonore, Musselwhite, Porcupine, and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine in the Dominican Republic. Goldcorp Inc. was founded in 1954 and is headquartered in Vancouver, Canada.

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