TRX Gold (NYSE:TRX) versus Aris Mining (NYSE:ARMN) Critical Analysis

Aris Mining (NYSE:ARMN) and TRX Gold (NYSE:TRX) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Aris Mining has a beta of -0.2, suggesting that its stock price is 120% less volatile than the S&P 500. Comparatively, TRX Gold has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aris Mining	-0.66%	4.97%	2.70%
TRX Gold	1.84%	-0.80%	-0.55%

Analyst Ratings

This is a summary of recent ratings and target prices for Aris Mining and TRX Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aris Mining	0	0	0	0	0.00
TRX Gold	0	0	2	0	3.00

TRX Gold has a consensus target price of $1.63, indicating a potential upside of 388.72%. Given TRX Gold’s stronger consensus rating and higher possible upside, analysts clearly believe TRX Gold is more favorable than Aris Mining.

Valuation & Earnings

This table compares Aris Mining and TRX Gold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aris Mining	$447.67 million	1.42	$11.42 million	($0.02)	-185.50
TRX Gold	$41.16 million	2.25	-$470,000.00	N/A	N/A

Aris Mining has higher revenue and earnings than TRX Gold.

Institutional & Insider Ownership

35.8% of Aris Mining shares are held by institutional investors. Comparatively, 1.1% of TRX Gold shares are held by institutional investors. 2.3% of TRX Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

TRX Gold beats Aris Mining on 7 of the 12 factors compared between the two stocks.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, 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.