Financial Analysis: Platinum Group Metals (NYSE:PLG) versus Mexus Gold US (OTCMKTS:MXSG)

Mexus Gold US (OTCMKTS:MXSG) and Platinum Group Metals (NYSE:PLG) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

16.3% of Platinum Group Metals shares are owned by institutional investors. 8.6% of Mexus Gold US shares are owned by company insiders. Comparatively, 0.0% of Platinum Group Metals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Mexus Gold US and Platinum Group Metals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mexus Gold US	N/A	N/A	-$1.80 million	N/A	N/A
Platinum Group Metals	N/A	N/A	-$4.61 million	($0.06)	-22.33

Analyst Ratings

This is a summary of current recommendations and price targets for Mexus Gold US and Platinum Group Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mexus Gold US	0	0	0	0	0.00
Platinum Group Metals	0	1	0	0	2.00

Given Mexus Gold US’s higher probable upside, equities analysts plainly believe Mexus Gold US is more favorable than Platinum Group Metals.

Profitability

This table compares Mexus Gold US and Platinum Group Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mexus Gold US	N/A	N/A	N/A
Platinum Group Metals	N/A	-10.13%	-9.69%

Volatility & Risk

Mexus Gold US has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Summary

Mexus Gold US beats Platinum Group Metals on 5 of the 8 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 United Mexican States. The company holds 100% interest in the Santa Elena prospect comprising 9 concessions covering an area of approximately 6500 acres located to the northwest of Caborca, Sonora State; and 90% interest in the Mabel Property covering an area of approximately 2,128 hectares located to the southwest of Nogales, Sonora State. It also owns mineral rights to Ures Property comprising 9 concessions covering an area of approximately 10,000 acres located in Sonora State, 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 Platinum Group Metals

Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Bushveld Igneous Complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was founded in 2000 and is headquartered in Vancouver, Canada.