Paramount Gold Nevada Corp (NYSE: PZG) and Alamos Gold (NYSE:AGI) are both small-cap gold – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Institutional & Insider Ownership

62.6% of Alamos Gold shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Paramount Gold Nevada Corp and Alamos Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Gold Nevada Corp N/A -23.87% -22.96%
Alamos Gold 2.08% 1.07% 0.82%

Earnings & Valuation

This table compares Paramount Gold Nevada Corp and Alamos Gold’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Paramount Gold Nevada Corp N/A N/A N/A ($0.27) -4.59
Alamos Gold $482.20 million 3.98 -$17.90 million $0.02 319.50

Paramount Gold Nevada Corp has higher revenue, but lower earnings than Alamos Gold. Paramount Gold Nevada Corp is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Paramount Gold Nevada Corp and Alamos Gold, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Gold Nevada Corp 0 0 2 0 3.00
Alamos Gold 0 2 1 0 2.33

Paramount Gold Nevada Corp currently has a consensus price target of $2.88, suggesting a potential upside of 131.85%. Alamos Gold has a consensus price target of $10.67, suggesting a potential upside of 66.93%. Given Paramount Gold Nevada Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Paramount Gold Nevada Corp is more favorable than Alamos Gold.

Dividends

Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Paramount Gold Nevada Corp 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.

Summary

Alamos Gold beats Paramount Gold Nevada Corp on 7 of the 11 factors compared between the two stocks.

About Paramount Gold Nevada Corp

Paramount Gold Nevada Corp. is an exploration-stage mining company. The Company is engaged in the business of acquiring, exploring and developing precious metal projects in the United States. Its principal Nevada interest, the Sleeper Gold Project, is located in Humboldt County, Nevada. Its project located in Oregon, known as the Grassy Mountain Project, is situated in Malheur County, Oregon. As of June 30, 2016, the Company owned additional mining claims in the State of Nevada, including the Mill Creek property, which had 36 unpatented lode mining claims in Lander County, and the Spring Valley property, which had 38 lode mining claims in Pershing County. Its subsidiaries, New Sleeper Gold LLC and Sleeper Mining Company, LLC, operate its mining interests in Nevada. Its subsidiaries, Calico Resources Corp. and Calico Resources USA Corp., hold its interest in the Grassy Mountain Project in Oregon. As of June 30, 2016, the Company had not generated any revenues from operations.

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.

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