Alamos Gold (NYSE: AGI) and Primero Mining Corp (NYSE:PPP) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Valuation & Earnings
This table compares Alamos Gold and Primero Mining Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alamos Gold||$510.10 million||4.27||$153.90 million||($0.05)||-144.77|
|Primero Mining Corp||N/A||N/A||N/A||($2.39)||-0.07|
Alamos Gold has higher revenue and earnings than Primero Mining Corp. Alamos Gold is trading at a lower price-to-earnings ratio than Primero Mining Corp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
63.3% of Alamos Gold shares are held by institutional investors. Comparatively, 42.0% of Primero Mining Corp shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Alamos Gold and Primero Mining Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Primero Mining Corp||1||2||1||0||2.00|
Alamos Gold presently has a consensus price target of $10.67, indicating a potential upside of 47.33%. Primero Mining Corp has a consensus price target of $2.25, indicating a potential upside of 1,332.21%. Given Primero Mining Corp’s higher possible upside, analysts plainly believe Primero Mining Corp is more favorable than Alamos Gold.
Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Primero Mining Corp does not pay a dividend. Alamos Gold pays out -40.0% of its earnings in the form of a dividend.
Risk and Volatility
Alamos Gold has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Primero Mining Corp has a beta of -0.4, indicating that its share price is 140% less volatile than the S&P 500.
This table compares Alamos Gold and Primero Mining Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Primero Mining Corp||-299.62%||-2.89%||-1.90%|
Alamos Gold beats Primero Mining Corp on 10 of the 11 factors compared between the two stocks.
Alamos Gold 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.
Primero Mining Corp Company Profile
Primero Mining Corp. is a precious metals producer with operations in both Mexico and Canada. The Company is focused on building a portfolio of precious metals assets in the Americas through acquiring, exploring, developing and operating mineral resource properties. Its segments include San Dimas, Cerro del Gallo, Black Fox Complex and Corporate. It owns over two producing properties, including the San Dimas gold-silver mine, located in Mexico’s San Dimas district, and the Black Fox mine, located in the Township of Black River-Matheson, Ontario, Canada. It owns properties adjacent to the Black Fox mine, Grey Fox and Pike River, which together with the Black Fox mine and the Black Fox mill, located on the Stock Mill property, comprise the Black Fox Complex. It also owns over two exploration properties, including the Cerro del Gallo gold-silver-copper project, which is located in the state of Guanajuato in central Mexico, and Ventanas, which is located in Durango State, Mexico.
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