Critical Review: Iamgold Corporation (IAG) and Alamos Gold (AGI)
Iamgold Corporation (NYSE: IAG) and Alamos Gold (NYSE:AGI) are both gold mining companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
This table compares Iamgold Corporation and Alamos Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Iamgold Corporation and Alamos Gold, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Iamgold Corporation currently has a consensus price target of $7.19, suggesting a potential upside of 25.24%. Alamos Gold has a consensus price target of $10.50, suggesting a potential upside of 69.08%. Given Alamos Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Alamos Gold is more favorable than Iamgold Corporation.
Institutional and Insider Ownership
54.1% of Iamgold Corporation shares are held by institutional investors. Comparatively, 63.3% of Alamos Gold shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Iamgold Corporation does not pay a dividend. 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.
Valuation and Earnings
This table compares Iamgold Corporation and Alamos Gold’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Iamgold Corporation||$987.10 million||2.70||$52.60 million||$1.09||5.27|
|Alamos Gold||$482.20 million||3.87||-$17.90 million||$0.02||310.50|
Iamgold Corporation has higher revenue and earnings than Alamos Gold. Iamgold Corporation is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Iamgold Corporation has a beta of -0.53, suggesting that its stock price is 153% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.
Iamgold Corporation beats Alamos Gold on 8 of the 15 factors compared between the two stocks.
Iamgold Corporation Company Profile
IAMGOLD Corporation (IAMGOLD) is engaged primarily in the exploration for, and the development and production of, mineral resource properties throughout the world. Through its holdings, IAMGOLD has interests in various operations, exploration and development properties. IAMGOLD is a mid-tier mining company with approximately four operating gold mines on over three continents. The Company’s gold mine segment is divided into geographic segments, such as Burkina Faso – Essakane mine; Suriname-Rosebel mine; Canada-Doyon division, which includes the Westwood mine and the Doyon mine, and Joint ventures (Mali)-Sadiola mine (41%) and Yatela mine (40%). The Company’s non-gold segments are divided into Exploration and evaluation, and Corporate, which includes royalty interests located in Canada and investments in associates and joint ventures. In Canada, the Company owns the Westwood mine in Quebec and the Cote Gold project, a development project located in Ontario.
Alamos Gold Company Profile
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.
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