Buenaventura Mining (NYSE: BVN) and Alio Gold (NYSE:ALO) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitabiliy, dividends, institutional ownership, risk and earnings.

Dividends

Buenaventura Mining pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Alio Gold does not pay a dividend. Buenaventura Mining pays out -5.6% of its earnings in the form of a dividend.

Profitability

This table compares Buenaventura Mining and Alio Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buenaventura Mining -33.54% -11.01% -7.92%
Alio Gold N/A N/A N/A

Valuation & Earnings

This table compares Buenaventura Mining and Alio Gold’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Buenaventura Mining $1.09 billion 2.82 $280.34 million ($1.44) -8.42
Alio Gold $127.57 million 1.07 $46.66 million N/A N/A

Buenaventura Mining has higher revenue and earnings than Alio Gold.

Analyst Ratings

This is a summary of current recommendations and price targets for Buenaventura Mining and Alio Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buenaventura Mining 0 1 1 0 2.50
Alio Gold 0 0 0 0 N/A

Buenaventura Mining presently has a consensus target price of $15.10, suggesting a potential upside of 24.59%. Given Buenaventura Mining’s higher probable upside, research analysts clearly believe Buenaventura Mining is more favorable than Alio Gold.

Institutional and Insider Ownership

48.2% of Buenaventura Mining shares are held by institutional investors. 19.3% of Buenaventura Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Buenaventura Mining beats Alio Gold on 9 of the 12 factors compared between the two stocks.

Buenaventura Mining Company Profile

Compania de Minas Buenaventura S.A.A. (Buenaventura) is a precious metals company. The Company is engaged in the exploration, mining and processing of gold, silver and other metals in Peru. The Company’s segments include Production and sale of minerals; Exploration and development activities; Construction and engineering services; Energy generation and transmission services; Insurance brokerage; Rental of mining concessions; Holding of investment in shares (mainly in Minera Yanacocha S.R.L. and S.M.R.L. Chaupiloma Dos de Cajamarca), and Industrial activities. The Company operates the Orcopampa, Uchucchacua, Julcani, Mallay and Breapampa mines and has controlling interests in over three other mining companies, which operate the Colquijirca-Marcapunta, Tantahuatay and La Zanja mines. It also owns an electric power transmission company, a hydroelectric plant, a processing plant and an engineering services consulting company and non-controlling interests in various other mining companies.

Alio Gold Company Profile

Alio Gold Inc, formerly Timmins Gold Corp, is a Canada-based gold producer engaged in the operation, development, exploration and acquisition of resource properties in Mexico through its subsidiaries, Timmins Goldcorp Mexico, S.A. de C.V. and Molimentales del Noroeste, S.A. de C.V. (MdN). MdN owns the San Francisco Mine in Sonora, Mexico. MdN also owns the Caballo Blanco Property, an exploration and evaluation asset in Veracruz, Mexico. The Mine and the La Chicharra pit are collectively known as the Gold Property. The Company also holds the Ana Paula gold project, which is an advanced stage development project in the Guerrero Gold Belt. The Guerrero Gold Belt project consists of over two claims totaling approximately 4,200 hectares at the north-west end of the Guerrero Gold Belt, with approximately 38,000 additional hectares in the surrounding area. Ana Paula is located in the north central part of the State of Guerrero in southern Mexico, 180 kilometers from Mexico City.

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