Financial Analysis: Osisko Development (NYSE:ODV) vs. Alamos Gold (NYSE:AGI)

Alamos Gold (NYSE:AGI) and Osisko Development (NYSE:ODV) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Earnings & Valuation

This table compares Alamos Gold and Osisko Development”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alamos Gold	$1.35 billion	10.62	$284.30 million	$0.83	40.96
Osisko Development	$3.33 million	242.53	-$63.01 million	($0.82)	-4.13

Alamos Gold has higher revenue and earnings than Osisko Development. Osisko Development is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alamos Gold and Osisko Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamos Gold	0	1	7	2	3.10
Osisko Development	1	0	1	1	2.67

Alamos Gold currently has a consensus price target of $31.17, indicating a potential downside of 8.33%. Given Alamos Gold’s stronger consensus rating and higher probable upside, research analysts clearly believe Alamos Gold is more favorable than Osisko Development.

Profitability

This table compares Alamos Gold and Osisko Development’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%
Osisko Development	N/A	-20.03%	-13.40%

Insider & Institutional Ownership

64.3% of Alamos Gold shares are owned by institutional investors. Comparatively, 15.2% of Osisko Development shares are owned by institutional investors. 0.5% of Alamos Gold shares are owned by insiders. Comparatively, 0.9% of Osisko Development shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Alamos Gold has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Osisko Development has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Summary

Alamos Gold beats Osisko Development on 12 of the 15 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 Osisko Development

Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. It explores for gold; and precious and base metals. The company's flagship asset is the Cariboo Gold Project covering an area of approximately 155,000 hectares consisting of 415 mineral titles located in British Columbia, Canada. It also holds a portfolio of marketable securities. Osisko Development Corp. is based in Montréal, Canada.