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That said, Item quality matters here, if you have a Q6 steel pickaxe fully modded out, then no matter what mod you choose to put on the auger, it wont be comparable until you have at least a Q4 auger.
The best mods for the auger, imo, are Bunker buster, Iron breaker, structural brace in that order depending on available mod slots- Beyond those three is kinda eh; Usually a color mod and whatever other mod i can shove on there to fill in the fifth slot on a Q6 auger.
I tend to drop the Grave Digger mod into the auger too, but you really end up with a ton of material (like clay) using it, so be careful.
One thing I'm hoping, is that they work in a "fuel efficiency" mod that could apply to vehicles, but also work on the auger and chainsaw - less refueling and more chewing up terrain would be handy.
If you check the stats on the auger as you swap mods in and out it does give you some basic info on damage etc.
A level 2 auger will wear out so fast you are going to chew through the repair kits so take a look at the resource requirements there and work out whether it is worth the upkeep. Then there is the gas it will go through for returns in resources gathered.