Critical Analysis: Minco Capital (OTCMKTS:MGHCF) vs. Dakota Gold (NYSE:DC)

Dakota Gold (NYSE:DC) and Minco Capital (OTCMKTS:MGHCF) 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.

Insider & Institutional Ownership

37.4% of Dakota Gold shares are owned by institutional investors. 26.0% of Dakota 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.

Profitability

This table compares Dakota Gold and Minco Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dakota Gold	N/A	-37.64%	-35.60%
Minco Capital	N/A	-3.84%	-3.70%

Analyst Ratings

This is a summary of current ratings and recommmendations for Dakota Gold and Minco Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dakota Gold	0	0	1	0	3.00
Minco Capital	0	0	0	0	0.00

Dakota Gold currently has a consensus target price of $7.50, suggesting a potential upside of 185.17%. Given Dakota Gold’s stronger consensus rating and higher probable upside, equities analysts plainly believe Dakota Gold is more favorable than Minco Capital.

Risk and Volatility

Dakota Gold has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Minco Capital has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dakota Gold and Minco Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dakota Gold	N/A	N/A	-$36.45 million	($0.37)	-7.11
Minco Capital	N/A	N/A	-$1.04 million	N/A	N/A

Summary

Dakota Gold beats Minco Capital on 5 of the 9 factors compared between the two stocks.

About Dakota Gold

Dakota Gold Corp. engages in the acquisition, exploration, and development of mineral properties in the United States. It primarily explores for gold deposits. The company holds 100% interest in the Blind Gold, City Creek, Tinton, West Corridor, Ragged Top, Poorman Anticline, Maitland, South Lead/ Whistler Gulch, the Barrick Option, Richmond Hill and Homestake Paleoplacer Properties located in Homestake Mining District, South Dakota. Dakota Gold Corp. was incorporated in 2017 and is based in Lead, South Dakota.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.