Alamos Gold (NYSE:AGI) & DPM Metals (OTCMKTS:DPMLF) Financial Comparison

DPM Metals (OTCMKTS:DPMLF) and Alamos Gold (NYSE:AGI) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares DPM Metals and Alamos Gold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$606.99 million	12.10	$235.88 million	$1.74	19.02
Alamos Gold	$1.35 billion	12.14	$284.30 million	$1.28	30.43

Alamos Gold has higher revenue and earnings than DPM Metals. DPM Metals 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 Ratings

This is a breakdown of recent ratings and target prices for DPM Metals and Alamos Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DPM Metals	0	1	3	4	3.38
Alamos Gold	0	1	10	3	3.14

Alamos Gold has a consensus target price of $43.00, indicating a potential upside of 10.40%. Given Alamos Gold’s higher possible upside, analysts plainly believe Alamos Gold is more favorable than DPM Metals.

Institutional and Insider Ownership

64.3% of Alamos Gold shares are owned by institutional investors. 0.3% of DPM Metals shares are owned by insiders. Comparatively, 0.5% of Alamos Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DPM Metals	39.03%	22.84%	19.66%
Alamos Gold	33.46%	12.36%	8.33%

Dividends

DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Alamos Gold pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. DPM Metals pays out 9.2% of its earnings in the form of a dividend. Alamos Gold pays out 7.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Alamos Gold beats DPM Metals on 9 of the 16 factors compared between the two stocks.

About DPM Metals

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition, exploration, development, mining, and processing of precious metals. The company primarily explores for gold, copper, and silver deposits. It holds a portfolio of projects located in Bulgaria, Namibia, Serbia, and Ecuador. The company is based in Toronto, Canada.

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.