Head-To-Head Analysis: Alamos Gold (AGI) and Royal Gold (RGLD)
Alamos Gold (NYSE: AGI) and Royal Gold (NASDAQ:RGLD) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.
Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Royal Gold pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. 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. Royal Gold pays out 62.3% of its earnings in the form of a dividend. Royal Gold has raised its dividend for 12 consecutive years. Royal Gold is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
63.0% of Alamos Gold shares are owned by institutional investors. Comparatively, 72.0% of Royal Gold shares are owned by institutional investors. 1.1% of Royal Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Alamos Gold and Royal Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Alamos Gold and Royal Gold’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||4.96||-$17.90 million||$0.02||307.50|
|Royal Gold||$440.81 million||12.57||$101.53 million||$1.54||54.96|
Royal Gold has lower revenue, but higher earnings than Alamos Gold. Royal Gold is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Alamos Gold and Royal Gold, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alamos Gold currently has a consensus target price of $10.83, indicating a potential upside of 76.15%. Royal Gold has a consensus target price of $96.56, indicating a potential upside of 14.09%. Given Alamos Gold’s higher probable upside, equities analysts clearly believe Alamos Gold is more favorable than Royal Gold.
Royal Gold beats Alamos Gold on 13 of the 16 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 Royal Gold
Royal Gold, Inc., together with its subsidiaries, is engaged in acquiring and managing precious metal streams, royalties and similar interests. The Company operates through two segments: Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests. Its assets are located in Canada, Chile, Dominican Republic, Mexico, the United States, Africa, Australia and Other. As of June 30, 2016, the Company owned stream interests on four producing properties and three development-stage properties. It has investments in stream interests relating to Pueblo Viejo, Andacollo, Wassa and Prestea, and Rainy River. As of June 30, 2016, the Company owned royalty interests on 34 producing properties, 21 development-stage properties and 131 exploration-stage properties, of which it considered 50 to be evaluation-stage projects.
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