Alamos Gold (AGI) vs. AngloGold Ashanti (AU) Critical Analysis
Alamos Gold (NYSE: AGI) and AngloGold Ashanti (NYSE:AU) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Insider & Institutional Ownership
63.0% of Alamos Gold shares are held by institutional investors. Comparatively, 31.2% of AngloGold Ashanti shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Alamos Gold has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, AngloGold Ashanti has a beta of -1.4, suggesting that its share price is 240% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Alamos Gold and AngloGold Ashanti, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alamos Gold presently has a consensus target price of $10.83, suggesting a potential upside of 71.41%. AngloGold Ashanti has a consensus target price of $11.50, suggesting a potential upside of 11.11%. Given Alamos Gold’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Alamos Gold is more favorable than AngloGold Ashanti.
This table compares Alamos Gold and AngloGold Ashanti’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Alamos Gold and AngloGold Ashanti’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alamos Gold||$482.20 million||3.94||-$17.90 million||$0.02||316.00|
|AngloGold Ashanti||$4.25 billion||1.00||$63.00 million||($0.40)||-25.88|
AngloGold Ashanti has higher revenue and earnings than Alamos Gold. AngloGold Ashanti is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.
Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. AngloGold Ashanti pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. Alamos Gold pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AngloGold Ashanti pays out -22.5% of its earnings in the form of a dividend. AngloGold Ashanti is clearly the better dividend stock, given its higher yield and lower payout ratio.
Alamos Gold beats AngloGold Ashanti on 9 of the 14 factors compared between the two stocks.
About Alamos Gold
Alamos Gold Inc. is a Canada-based mid-tier gold producer. The Company owns and operates the Mulatos Mine, as well as the Esperanza, Agi Dagi, Kirazli and Camyurt gold development projects. The Mulatos mine is located within the 30,536 hectares Salamandra group of concessions in the state of Sonora in northwest Mexico. The Esperanza Gold Project is a development stage asset located in south-central Mexico in the state of Morelos. Agi Dagi and Kirazli gold development projects are located in Canakkale Province on the Biga Peninsula of northwestern Turkey. The Camyurt project is located near southeast of Canakkale, Turkey. In addition, the Company owns a 100% interest in the Quartz Mountain Property, which is located on the northern extension of the prolific Basin and Range Province of Nevada in Oregon.
About AngloGold Ashanti
AngloGold Ashanti Limited (AngloGold Ashanti) is a gold mining company. The Company’s business activities span the spectrum of the mining value chain. Its main product is gold. Its portfolio includes over 17 mines in approximately nine countries. It also produces silver, uranium and sulfuric acid as by-products. The Company operates through four segments: South Africa, Continental Africa, Australasia and Americas. Its South African operations comprise over four mines and surface production facilities, which include the Vaal River operations, including Kopanang and Moab Khotsong; The West Wits operations, including Mponeng and TauTona, and surface operations. It has operations in Continental Africa in locations, including Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania. The Australasia segment includes the operations in Australia. It consists of Sunrise Dam and Tropicana. The Americas segment includes the operations in Argentina, Brazil and the United States.
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