Reviewing Allied Gold (NYSE:AAUC) and Agnico Eagle Mines (NYSE:AEM)

Allied Gold (NYSE:AAUC) and Agnico Eagle Mines (NYSE:AEM) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Allied Gold and Agnico Eagle Mines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gold	1	0	0	2	3.00
Agnico Eagle Mines	0	3	8	6	3.18

Agnico Eagle Mines has a consensus target price of $201.60, indicating a potential upside of 15.72%. Given Agnico Eagle Mines’ stronger consensus rating and higher probable upside, analysts clearly believe Agnico Eagle Mines is more favorable than Allied Gold.

Institutional & Insider Ownership

68.3% of Agnico Eagle Mines shares are owned by institutional investors. 0.5% of Agnico Eagle Mines shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Allied Gold and Agnico Eagle Mines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gold	$730.38 million	3.98	-$115.63 million	($0.36)	-64.80
Agnico Eagle Mines	$8.29 billion	10.55	$1.90 billion	$6.85	25.43

Agnico Eagle Mines has higher revenue and earnings than Allied Gold. Allied Gold 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.

Profitability

This table compares Allied Gold and Agnico Eagle Mines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Gold	-3.58%	24.32%	7.40%
Agnico Eagle Mines	32.62%	15.64%	11.08%

Summary

Agnico Eagle Mines beats Allied Gold on 13 of the 14 factors compared between the two stocks.

About Allied Gold

Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in Canada.

About Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.