Loncor Gold (OTCMKTS:LONCF – Get Free Report) and TRX Gold (NYSE:TRX – Get Free Report) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Loncor Gold and TRX Gold, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Loncor Gold | 0 | 0 | 1 | 0 | 3.00 |
| TRX Gold | 0 | 0 | 1 | 0 | 3.00 |
Loncor Gold presently has a consensus price target of $0.85, indicating a potential upside of 223.93%. TRX Gold has a consensus price target of $1.30, indicating a potential upside of 242.11%. Given TRX Gold’s higher probable upside, analysts clearly believe TRX Gold is more favorable than Loncor Gold.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Loncor Gold | N/A | N/A | -$2.93 million | ($0.01) | -26.24 |
| TRX Gold | $15.09 million | 6.97 | -$6.22 million | ($0.01) | -38.00 |
Loncor Gold has higher earnings, but lower revenue than TRX Gold. TRX Gold is trading at a lower price-to-earnings ratio than Loncor Gold, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
1.1% of TRX Gold shares are held by institutional investors. 22.1% of Loncor Gold shares are held by insiders. Comparatively, 2.3% of TRX Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Loncor Gold and TRX Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Loncor Gold | N/A | -6.20% | -5.99% |
| TRX Gold | -9.55% | -11.99% | -8.65% |
Risk & Volatility
Loncor Gold has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, TRX Gold has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Summary
Loncor Gold beats TRX Gold on 7 of the 10 factors compared between the two stocks.
About Loncor Gold
Loncor Gold Inc., a gold exploration company, engages in the acquisition, exploration, and development of precious metal projects in the Ngayu greenstone belt in the northeast of the Democratic Republic of the Congo. It explores for gold and platinum deposits. The company holds 84.68% interest in the Adumbi project, which consist of two mining licenses covering an area of 361 square kilometers located within the Archaean Ngayu Greenstone Belt in the Ituri and Haut Uele provinces in northeastern Congo. It also holds 100% interest in the Isiro properties that consist of 11 exploration permits covering an area of 1,884 square kilometers situated in the province of Haut Uele, in northeastern Congo. In addition, Loncor Gold Inc. owns interest in North Kivu, Ngayu, Devon, Navarro, Makapela, and Yindi projects. The company was formerly known as Loncor Resources Inc. and changed its name to Loncor Gold Inc. in June 2021. Loncor Gold Inc. is headquartered in Toronto, Canada.
About TRX Gold
TRX Gold Corporation engages in the exploration, development, and production of mineral property interests in the United Republic of Tanzania. The company primarily explores for gold deposits. It holds interests in the Buckreef gold project that comprises a single Special Mining License covering an area of 16.04 square kilometers and 12 Prospecting Licenses covering 98.19 square kilometers located in north-central Tanzania. The company was formerly known as Tanzanian Gold Corporation and changed its name to TRX Gold Corporation in May 2022. TRX Gold Corporation was incorporated in 1990 and is based in Oakville, Canada.
Receive News & Ratings for Loncor Gold Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Loncor Gold and related companies with MarketBeat.com's FREE daily email newsletter.
