Critical Comparison: Seabridge Gold (SA) vs. Alamos Gold Inc (US) (AGI)
Seabridge Gold (NYSE: SA) and Alamos Gold Inc (US) (NYSE:AGI) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitabiliy.
Risk and Volatility
Seabridge Gold has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Alamos Gold Inc (US) has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
This table compares Seabridge Gold and Alamos Gold Inc (US)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alamos Gold Inc (US)||-12.41%||-2.01%||-1.42%|
Valuation & Earnings
This table compares Seabridge Gold and Alamos Gold Inc (US)’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seabridge Gold||N/A||N/A||-$7.82 million||($0.12)||-85.00|
|Alamos Gold Inc (US)||$498.90 million||4.05||$144.80 million||($0.22)||-30.68|
Alamos Gold Inc (US) has higher revenue and earnings than Seabridge Gold. Seabridge Gold is trading at a lower price-to-earnings ratio than Alamos Gold Inc (US), indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
30.1% of Seabridge Gold shares are owned by institutional investors. Comparatively, 62.6% of Alamos Gold Inc (US) shares are owned by institutional investors. 12.8% of Seabridge Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Alamos Gold Inc (US) pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Seabridge Gold does not pay a dividend. Alamos Gold Inc (US) pays out -9.1% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Seabridge Gold and Alamos Gold Inc (US), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alamos Gold Inc (US)||0||3||4||0||2.57|
Alamos Gold Inc (US) has a consensus price target of $11.40, suggesting a potential upside of 68.89%. Given Alamos Gold Inc (US)’s higher probable upside, analysts clearly believe Alamos Gold Inc (US) is more favorable than Seabridge Gold.
Alamos Gold Inc (US) beats Seabridge Gold on 10 of the 13 factors compared between the two stocks.
Seabridge Gold Company Profile
Seabridge Gold Inc. (Seabridge) is a development-stage company. The Company is engaged in the acquisition and exploration of gold properties located in North America. As of December 31, 2016, the Company owned six properties with gold resources. Its material properties are its Kerr-Sulphurets-Mitchell (KSM) Project and its Courageous Lake Project. Its KSM Project is located within the Iskut-Stikine region of British Columbia, approximately 21 kilometers south-southeast of the former Eskay Creek Mine and approximately 65 kilometers north-northwest of Stewart, British Columbia. As of December 31, 2016, the KSM property consisted of three discontinuous claim blocks. These claim blocks are referred to as the KSM claim group; the Seabee/Tina claims, and the KSM placer claim block. As of December 31, 2016, the two claim blocks (KSM and Seabee/Tina) contained two mineral leases and 73 mineral claims, consisting of both cell and legacy claims.
Alamos Gold Inc (US) Company Profile
Alamos Gold Inc. is a Canada-based mid-tier gold producer. The Company owns and operates the Mulatos Mine, as well as the Esperanza, Agi Dagi, Kirazli and Camyurt gold development projects. The Mulatos mine is located within the 30,536 hectares Salamandra group of concessions in the state of Sonora in northwest Mexico. The Esperanza Gold Project is a development stage asset located in south-central Mexico in the state of Morelos. Agi Dagi and Kirazli gold development projects are located in Canakkale Province on the Biga Peninsula of northwestern Turkey. The Camyurt project is located near southeast of Canakkale, Turkey. In addition, the Company owns a 100% interest in the Quartz Mountain Property, which is located on the northern extension of the prolific Basin and Range Province of Nevada in Oregon.
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