Eldorado Gold (NYSE:EGO) versus Allied Gold (NYSE:AAUC) Critical Comparison

Allied Gold (NYSE:AAUC) and Eldorado Gold (NYSE:EGO) are both mid-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Allied Gold and Eldorado Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gold	1	1	0	1	2.33
Eldorado Gold	1	1	4	2	2.88

Eldorado Gold has a consensus price target of $31.00, indicating a potential upside of 9.17%. Given Eldorado Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Eldorado Gold is more favorable than Allied Gold.

Institutional and Insider Ownership

69.6% of Eldorado Gold shares are owned by institutional investors. 0.6% of Eldorado Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Allied Gold and Eldorado Gold”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gold	$730.38 million	2.84	-$115.63 million	($0.36)	-46.42
Eldorado Gold	$1.68 billion	3.40	$289.12 million	$1.80	15.78

Eldorado Gold has higher revenue and earnings than Allied Gold. Allied Gold is trading at a lower price-to-earnings ratio than Eldorado Gold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Allied Gold and Eldorado Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Gold	-3.58%	24.32%	7.40%
Eldorado Gold	26.07%	8.79%	5.84%

Summary

Eldorado Gold beats Allied Gold on 12 of the 14 factors compared between the two stocks.

About Allied Gold

Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in Canada.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.