Alexco Resource (NYSE:AXU) vs. Agnico Eagle Mines (NYSE:AEM) Critical Comparison

Agnico Eagle Mines (NYSE:AEMGet Rating) and Alexco Resource (NYSE:AXUGet Rating) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

64.6% of Agnico Eagle Mines shares are owned by institutional investors. Comparatively, 26.5% of Alexco Resource shares are owned by institutional investors. 0.5% of Agnico Eagle Mines shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Agnico Eagle Mines and Alexco Resource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agnico Eagle Mines 14.16% 10.03% 5.92%
Alexco Resource -14.90% -6.95% -6.05%

Analyst Recommendations

This is a summary of current ratings and target prices for Agnico Eagle Mines and Alexco Resource, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agnico Eagle Mines 0 2 7 0 2.78
Alexco Resource 0 0 0 0 N/A

Agnico Eagle Mines currently has a consensus target price of $86.15, indicating a potential upside of 54.95%. Given Agnico Eagle Mines’ higher probable upside, equities research analysts clearly believe Agnico Eagle Mines is more favorable than Alexco Resource.

Risk and Volatility

Agnico Eagle Mines has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Alexco Resource has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Earnings & Valuation

This table compares Agnico Eagle Mines and Alexco Resource’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agnico Eagle Mines $3.82 billion 3.57 $543.01 million $2.21 25.16
Alexco Resource $17.16 million 9.77 -$2.51 million ($0.03) -35.99

Agnico Eagle Mines has higher revenue and earnings than Alexco Resource. Alexco Resource 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 Alexco Resource on 11 of the 13 factors compared between the two stocks.

Agnico Eagle Mines Company Profile (Get Rating)

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Sweden, and Finland. The company operates through Northern Business and Southern Business segments. It primarily produces and sells gold deposit, as well as explores for silver, zinc, and copper deposits. The company's flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2020, its LaRonde mine had a mineral reserve of approximately 3.8 million ounces of gold. The company is also involved in exploration activities in Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.

Alexco Resource Company Profile (Get Rating)

Alexco Resource Corp. engages in the mineral exploration, evaluation, development, and operational activities primarily in Yukon Territory, Canada. The company explores for silver, lead, zinc, and gold deposits. It owns interests in the majority of the historic Keno Hill Silver District project that comprises the Flame & Moth, Bermingham, Lucky Queen, Bellekeno, and Onek deposits, as well as 722 quartz mining leases, 873 quartz claims, 24 placer mining claims, 1 quartz mining license and 50% of 3 quartz mining leases, 2 crown grants, and 6 fee simple lots and 7 surface leases located in Yukon Territory. Alexco Resource Corp. was incorporated in 2004 and is headquartered in Vancouver, Canada.

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