Allied Gold (NYSE:AAUC) vs. Agnico Eagle Mines (NYSE:AEM) Financial Survey

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Agnico Eagle Mines and Allied Gold, as reported by MarketBeat.com.

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

Agnico Eagle Mines presently has a consensus target price of $201.60, indicating a potential upside of 18.90%. Given Agnico Eagle Mines’ stronger consensus rating and higher probable upside, analysts clearly believe Agnico Eagle Mines is more favorable than Allied Gold.

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agnico Eagle Mines	$8.29 billion	10.27	$1.90 billion	$6.85	24.75
Allied Gold	$1.07 billion	2.66	-$115.63 million	($0.36)	-63.64

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.

Institutional and Insider Ownership

68.3% of Agnico Eagle Mines shares are owned by institutional investors. 0.5% of Agnico Eagle Mines shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

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

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.

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.