Alamos Gold Inc (US) (NYSE: AGI) and Compania de Minas Buenaventura SAA (NYSE:BVN) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares Alamos Gold Inc (US) and Compania de Minas Buenaventura SAA’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alamos Gold Inc (US) $482.20 million 4.94 -$17.90 million $0.02 306.00
Compania de Minas Buenaventura SAA $1.07 billion 3.49 -$323.49 million ($1.39) -10.55

Alamos Gold Inc (US) has higher earnings, but lower revenue than Compania de Minas Buenaventura SAA. Compania de Minas Buenaventura SAA is trading at a lower price-to-earnings ratio than Alamos Gold Inc (US), indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

63.0% of Alamos Gold Inc (US) shares are owned by institutional investors. Comparatively, 45.3% of Compania de Minas Buenaventura SAA shares are owned by institutional investors. 19.3% of Compania de Minas Buenaventura SAA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Alamos Gold Inc (US) has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Compania de Minas Buenaventura SAA has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Alamos Gold Inc (US) and Compania de Minas Buenaventura SAA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alamos Gold Inc (US) 2.08% 1.07% 0.82%
Compania de Minas Buenaventura SAA -29.67% -11.11% -7.90%

Analyst Recommendations

This is a summary of current ratings for Alamos Gold Inc (US) and Compania de Minas Buenaventura SAA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alamos Gold Inc (US) 0 4 2 0 2.33
Compania de Minas Buenaventura SAA 0 2 1 0 2.33

Alamos Gold Inc (US) currently has a consensus target price of $10.38, suggesting a potential upside of 69.53%. Compania de Minas Buenaventura SAA has a consensus target price of $17.30, suggesting a potential upside of 17.93%. Given Alamos Gold Inc (US)’s higher probable upside, research analysts clearly believe Alamos Gold Inc (US) is more favorable than Compania de Minas Buenaventura SAA.

Dividends

Alamos Gold Inc (US) pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Compania de Minas Buenaventura SAA pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Alamos Gold Inc (US) 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. Compania de Minas Buenaventura SAA pays out -5.8% of its earnings in the form of a dividend. Compania de Minas Buenaventura SAA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Alamos Gold Inc (US) beats Compania de Minas Buenaventura SAA on 10 of the 15 factors compared between the two stocks.

Alamos Gold Inc (US) 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.

Compania de Minas Buenaventura SAA Company Profile

Compania de Minas Buenaventura S.A.A. (Buenaventura) is a precious metals company. The Company is engaged in the exploration, mining and processing of gold, silver and other metals in Peru. The Company’s segments include Production and sale of minerals; Exploration and development activities; Construction and engineering services; Energy generation and transmission services; Insurance brokerage; Rental of mining concessions; Holding of investment in shares (mainly in Minera Yanacocha S.R.L. and S.M.R.L. Chaupiloma Dos de Cajamarca), and Industrial activities. The Company operates the Orcopampa, Uchucchacua, Julcani, Mallay and Breapampa mines and has controlling interests in over three other mining companies, which operate the Colquijirca-Marcapunta, Tantahuatay and La Zanja mines. It also owns an electric power transmission company, a hydroelectric plant, a processing plant and an engineering services consulting company and non-controlling interests in various other mining companies.

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