Alio Gold (NYSE: ALO) and Newmont Mining Corporation (NYSE:NEM) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Institutional and Insider Ownership

81.1% of Newmont Mining Corporation shares are owned by institutional investors. 0.3% of Newmont Mining Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Alio Gold and Newmont Mining Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alio Gold 0 1 0 0 2.00
Newmont Mining Corporation 1 5 11 0 2.59

Newmont Mining Corporation has a consensus price target of $41.00, indicating a potential upside of 7.68%. Given Newmont Mining Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Newmont Mining Corporation is more favorable than Alio Gold.

Profitability

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

Net Margins Return on Equity Return on Assets
Alio Gold N/A N/A N/A
Newmont Mining Corporation -6.73% 6.67% 3.82%

Valuation and Earnings

This table compares Alio Gold and Newmont Mining Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alio Gold $121.56 million 1.56 $42.14 million N/A N/A
Newmont Mining Corporation $7.11 billion 2.86 $2.76 billion ($0.90) -42.31

Newmont Mining Corporation has higher revenue and earnings than Alio Gold.

Dividends

Newmont Mining Corporation pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Alio Gold does not pay a dividend. Newmont Mining Corporation pays out -33.3% of its earnings in the form of a dividend.

Summary

Newmont Mining Corporation beats Alio Gold on 13 of the 14 factors compared between the two stocks.

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.

Newmont Mining Corporation Company Profile

Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company’s segments include North America, South America, Asia Pacific and Africa. The Company’s North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in the state of Nevada, and Cripple Creek &Victor (CC&V) in the state of Colorado, in the United States. The Company’s South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Company’s Asia Pacific segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Company’s Africa segment consists primarily of Ahafo and Akyem in Ghana. As of December 31, 2016, it had gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles (59,000 square kilometers).

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