Analyzing Entrée Resources (OTCMKTS:ERLFF) & Austin Gold (NYSE:AUST)

Entrée Resources (OTCMKTS:ERLFF) and Austin Gold (NYSE:AUST) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Risk and Volatility

Entrée Resources has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Austin Gold has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Entrée Resources and Austin Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entrée Resources	0	0	0	0	N/A
Austin Gold	0	0	1	0	3.00

Austin Gold has a consensus price target of $3.00, indicating a potential upside of 227.87%. Given Austin Gold’s higher probable upside, analysts clearly believe Austin Gold is more favorable than Entrée Resources.

Earnings and Valuation

This table compares Entrée Resources and Austin Gold’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entrée Resources	N/A	N/A	-$9.58 million	($0.05)	-21.40
Austin Gold	N/A	N/A	-$4.00 million	($0.32)	-2.86

Entrée Resources is trading at a lower price-to-earnings ratio than Austin Gold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Entrée Resources and Austin Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entrée Resources	N/A	N/A	-145.18%
Austin Gold	N/A	-35.82%	-34.68%

Insider & Institutional Ownership

62.1% of Austin Gold shares are owned by institutional investors. 3.4% of Entrée Resources shares are owned by company insiders. Comparatively, 70.7% of Austin Gold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Austin Gold beats Entrée Resources on 8 of the 10 factors compared between the two stocks.

About Entrée Resources

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.

About Austin Gold

Austin Gold Corp., a gold exploration company, focuses on the acquisition, exploration, and evaluation of mineral property interests in Nevada. The company holds interest in Kelly Creek Project located in the Kelly Creek Basin, in southeastern Humboldt County, Nevada; Fourmile Basin Project that comprises various unpatented lode mining claims covering approximately 6410 acres located in Nye County; the Lone Mountain Project consisting of various unpatented lode mining and patented mining claims located near Lone Mountain in Elko County. It also holds interest in the Miller Project consisting various unpatented lode mining claims located in Elko County in Nevada. Austin Gold Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.