Contrasting TRX Gold (NYSE:TRX) and Seabridge Gold (NYSE:SA)

TRX Gold (NYSE:TRX – Get Rating) and Seabridge Gold (NYSE:SA – Get Rating) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Earnings and Valuation

This table compares TRX Gold and Seabridge Gold’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TRX Gold	$24.81 million	5.14	-$6.22 million	($0.01)	-46.15
Seabridge Gold	N/A	N/A	$710,000.00	$0.09	123.68

Seabridge Gold has lower revenue, but higher earnings than TRX Gold. TRX Gold is trading at a lower price-to-earnings ratio than Seabridge Gold, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

1.1% of TRX Gold shares are owned by institutional investors. Comparatively, 29.4% of Seabridge Gold shares are owned by institutional investors. 2.3% of TRX Gold shares are owned by insiders. Comparatively, 12.8% of Seabridge Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for TRX Gold and Seabridge Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TRX Gold	0	0	1	0	3.00
Seabridge Gold	0	0	1	0	3.00

TRX Gold currently has a consensus target price of $1.10, suggesting a potential upside of 138.35%. Seabridge Gold has a consensus target price of $60.00, suggesting a potential upside of 439.08%. Given Seabridge Gold’s higher probable upside, analysts plainly believe Seabridge Gold is more favorable than TRX Gold.

Risk and Volatility

TRX Gold has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Seabridge Gold has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares TRX Gold and Seabridge Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TRX Gold	-2.75%	-7.70%	-5.88%
Seabridge Gold	N/A	1.97%	1.47%

Summary

Seabridge Gold beats TRX Gold on 10 of the 11 factors compared between the two stocks.

About TRX Gold

(Get Rating)

TRX Gold Corp. along with its joint venture partner, State Mining Corporation of Tanzania (STAMICO), is building a gold project at Buckreef in Tanzania. The company’s Buckreef Project is located in the Geita District of the Geita Region south of Lake Victoria, approximately 110 kilometers southwest of the city of Mwanza, Tanzania. The Buckreef Project consists of over four prospects, namely Buckreef, Bingwa, Tembo and Eastern Porphyry. The company was founded on July 5, 1990 and is headquartered in Toronto, Canada.

About Seabridge Gold

(Get Rating)

Seabridge Gold Inc. engages in the acquisition and exploration of gold properties. It operates through the following projects: Kerr-Sulphurets-Mitchel (KSM), Courageous Lake, Iskut, Snowstorm, non-core assets, 3 Aces, and building trust. The company was founded by James S. Anthony and Rudi P. Fronk on September 14, 1979 and is headquartered in Toronto, Canada.