Reviewing New Found Gold (NYSE:NFGC) & Alamos Gold (NYSE:AGI)

New Found Gold (NYSE:NFGCGet Rating) and Alamos Gold (NYSE:AGIGet Rating) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for New Found Gold and Alamos Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Found Gold 0 0 1 0 3.00
Alamos Gold 0 2 4 0 2.67

New Found Gold currently has a consensus price target of 10.00, suggesting a potential upside of 172.48%. Alamos Gold has a consensus price target of $12.75, suggesting a potential upside of 79.58%. Given New Found Gold’s stronger consensus rating and higher probable upside, research analysts clearly believe New Found Gold is more favorable than Alamos Gold.

Institutional & Insider Ownership

22.2% of New Found Gold shares are held by institutional investors. Comparatively, 50.9% of Alamos Gold shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares New Found Gold and Alamos Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Found Gold N/A -80.17% -66.34%
Alamos Gold 6.76% 4.51% 3.42%

Valuation & Earnings

This table compares New Found Gold and Alamos Gold’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Found Gold N/A N/A -$40.41 million -0.48 -7.65
Alamos Gold $823.60 million 3.38 -$66.70 million $0.14 50.71

New Found Gold has higher earnings, but lower revenue than Alamos Gold. New Found 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.

Summary

Alamos Gold beats New Found Gold on 8 of the 11 factors compared between the two stocks.

About New Found Gold

(Get Rating)

New Found Gold Corp., a mineral exploration company, engages in the identification, acquisition, and exploration of mineral properties in the Provinces of Newfoundland and Labrador, and Ontario. The company primarily explores for gold deposit. It holds 100% interests in the Queensway project that includes 86 mineral licenses and 6,041 claims covering an area of 151,030 hectares of land located near Gander, Newfoundland; and the Lucky Strike project comprising 11,684 hectares located in Kirkland Lake, Ontario. The company was formerly known as Palisade Resources Corp. and changed its name to New Found Gold Corp. in June 2017. New Found Gold Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.

About Alamos Gold

(Get Rating)

Alamos gold holding oorperatief u.a. operates as a subsidiary of Alamos Gold Inc.

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