Agnico Eagle Mines (NYSE:AEM – Get Free Report) and Allied Gold (NYSE:AAUC – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Profitability
This table compares Agnico Eagle Mines and Allied Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Agnico Eagle Mines | 32.62% | 15.64% | 11.08% |
| Allied Gold | -3.58% | 24.32% | 7.40% |
Insider & Institutional Ownership
68.3% of Agnico Eagle Mines shares are held by institutional investors. 0.5% of Agnico Eagle Mines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Agnico Eagle Mines | 0 | 3 | 8 | 6 | 3.18 |
| Allied Gold | 1 | 0 | 0 | 2 | 3.00 |
Agnico Eagle Mines presently has a consensus price target of $201.60, indicating a potential upside of 11.16%. Given Agnico Eagle Mines’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Agnico Eagle Mines is more favorable than Allied Gold.
Valuation & Earnings
This table compares Agnico Eagle Mines and Allied Gold”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Agnico Eagle Mines | $8.29 billion | 10.98 | $1.90 billion | $6.85 | 26.48 |
| Allied Gold | $1.07 billion | 2.87 | -$115.63 million | ($0.36) | -68.81 |
Agnico Eagle Mines has higher revenue and earnings than Allied Gold. Allied Gold is trading at a lower price-to-earnings ratio than Agnico Eagle Mines, indicating that it is currently the more affordable of the two stocks.
Summary
Agnico Eagle Mines beats Allied Gold on 13 of the 14 factors compared between the two stocks.
About Agnico Eagle Mines
Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.
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.
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