Contrasting Centerra Gold (NYSE:CGAU) and Allied Gold (NYSE:AAUC)

Centerra Gold (NYSE:CGAU) and Allied Gold (NYSE:AAUC) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for Centerra Gold and Allied Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerra Gold	0	4	6	2	2.83
Allied Gold	1	2	0	1	2.25

Centerra Gold currently has a consensus target price of $16.00, suggesting a potential downside of 5.64%. Given Centerra Gold’s stronger consensus rating and higher possible upside, equities analysts clearly believe Centerra Gold is more favorable than Allied Gold.

Earnings and Valuation

This table compares Centerra Gold and Allied Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerra Gold	$1.21 billion	2.79	$80.39 million	$1.64	10.34
Allied Gold	$730.38 million	5.31	-$115.63 million	($0.36)	-86.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Centerra Gold	26.35%	10.47%	7.60%
Allied Gold	-3.58%	24.32%	7.40%

Institutional & Insider Ownership

55.4% of Centerra Gold shares are held by institutional investors. 0.2% of Centerra Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Centerra Gold beats Allied Gold on 12 of the 14 factors compared between the two stocks.

About Centerra Gold

Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey. The company was incorporated in 2002 and is based 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.