Alamos Gold (NYSE:AGI – Get Free Report) and US Gold (NASDAQ:USAU – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional & Insider Ownership
64.3% of Alamos Gold shares are owned by institutional investors. Comparatively, 6.6% of US Gold shares are owned by institutional investors. 0.5% of Alamos Gold shares are owned by insiders. Comparatively, 11.1% of US Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Alamos Gold and US Gold’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Alamos Gold | 22.99% | 10.67% | 7.16% |
US Gold | N/A | -73.81% | -50.64% |
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Alamos Gold | $1.35 billion | 10.42 | $284.30 million | $0.83 | 40.19 |
US Gold | N/A | N/A | -$20.56 million | ($1.53) | -9.88 |
Alamos Gold has higher revenue and earnings than US Gold. US 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.
Volatility & Risk
Alamos Gold has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, US Gold has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Alamos Gold and US Gold, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Alamos Gold | 0 | 1 | 7 | 2 | 3.10 |
US Gold | 0 | 0 | 3 | 0 | 3.00 |
Alamos Gold currently has a consensus target price of $30.38, suggesting a potential downside of 8.93%. US Gold has a consensus target price of $15.00, suggesting a potential downside of 0.79%. Given US Gold’s higher possible upside, analysts clearly believe US Gold is more favorable than Alamos Gold.
Summary
Alamos Gold beats US Gold on 11 of the 14 factors compared between the two stocks.
About Alamos Gold
Alamos Gold Inc. engages in the acquisition, exploration, development, and extraction of precious metals in Canada and Mexico. The company primarily explores for gold deposits. It holds 100% interest in the Young-Davidson mine and Island Gold mine located in the Ontario, Canada; Mulatos mine located in the Sonora, Mexico; and Lynn Lake project situated in the Manitoba, Canada. The company also holds interest in the Quartz Mountain project located in the Oregon United states. Alamos Gold Inc. was founded in 2003 and is based in Toronto, Canada.
About US Gold
U.S. Gold Corp. engages in the exploration and development of gold and precious metals in the United States. It also explores for copper and silver deposits. The company holds 100% interests in the CK Gold project, which consists of various mining leases and other mineral rights covering approximately 1,120 acres in Laramie County, Wyoming; the Keystone project that consists of 601 unpatented lode mining claims covering approximately 20 square miles in Eureka County, Nevada; and the Challis Gold project, which consists of 77 unpatented lode mining claims covering approximately 1,710 acres in Lemhi County, Idaho. It also has earn-in agreement to acquire a 50% ownership interest in the Maggie Creek project located in Eureka County, Nevada. The company was formerly known as Dataram Corporation and changed its name to U.S. Gold Corp. in June 2017. U.S. Gold Corp. is based in Elko, Nevada.
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