Analyzing Gold Reserve (OTCMKTS:GDRZF) & Allied Gold (NYSE:AAUC)

Allied Gold (NYSE:AAUC) and Gold Reserve (OTCMKTS:GDRZF) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Allied Gold and Gold Reserve, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gold	1	2	0	1	2.25
Gold Reserve	0	0	0	0	0.00

Earnings and Valuation

This table compares Allied Gold and Gold Reserve”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	5.40	-$115.63 million	($0.36)	-87.50
Gold Reserve	$3.11 million	N/A	-$15.19 million	($0.26)	-14.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allied Gold	-3.58%	24.45%	7.06%
Gold Reserve	N/A	-45.96%	-35.78%

Summary

Allied Gold beats Gold Reserve on 5 of the 9 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 Gold Reserve

Gold Reserve Inc., an exploration stage company, engages in evaluating, acquiring, exploring, and developing mineral properties. It also holds interests in LMS Gold project located in Alaska, the United States. The company was founded in 1956 and is based in Spokane, Washington.