Primero Mining Corp (NYSE: PPP) and Alamos Gold (NYSE:AGI) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Primero Mining Corp has a beta of -0.4, meaning that its share price is 140% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares Primero Mining Corp and Alamos Gold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Primero Mining Corp N/A N/A N/A ($2.39) -0.07
Alamos Gold $510.10 million 4.36 $153.90 million ($0.05) -147.97

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

Insider and Institutional Ownership

42.0% of Primero Mining Corp shares are held by institutional investors. Comparatively, 63.3% of Alamos Gold shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Primero Mining Corp and Alamos Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primero Mining Corp -299.62% -2.89% -1.90%
Alamos Gold -2.61% 0.44% 0.33%

Dividends

Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Primero Mining Corp does not pay a dividend. Alamos Gold pays out -40.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Primero Mining Corp and Alamos Gold, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primero Mining Corp 1 2 1 0 2.00
Alamos Gold 0 2 1 0 2.33

Primero Mining Corp currently has a consensus target price of $2.25, indicating a potential upside of 1,332.21%. Alamos Gold has a consensus target price of $10.67, indicating a potential upside of 44.14%. Given Primero Mining Corp’s higher probable upside, equities analysts plainly believe Primero Mining Corp is more favorable than Alamos Gold.

Summary

Alamos Gold beats Primero Mining Corp on 10 of the 11 factors compared between the two stocks.

About Primero Mining Corp

Primero Mining Corp. is a precious metals producer with operations in both Mexico and Canada. The Company is focused on building a portfolio of precious metals assets in the Americas through acquiring, exploring, developing and operating mineral resource properties. Its segments include San Dimas, Cerro del Gallo, Black Fox Complex and Corporate. It owns over two producing properties, including the San Dimas gold-silver mine, located in Mexico’s San Dimas district, and the Black Fox mine, located in the Township of Black River-Matheson, Ontario, Canada. It owns properties adjacent to the Black Fox mine, Grey Fox and Pike River, which together with the Black Fox mine and the Black Fox mill, located on the Stock Mill property, comprise the Black Fox Complex. It also owns over two exploration properties, including the Cerro del Gallo gold-silver-copper project, which is located in the state of Guanajuato in central Mexico, and Ventanas, which is located in Durango State, Mexico.

About Alamos Gold

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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