AngloGold Ashanti (NYSE: AU) and Alamos Gold (NYSE:AGI) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Dividends

AngloGold Ashanti pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Alamos Gold pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares AngloGold Ashanti and Alamos Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AngloGold Ashanti N/A N/A N/A
Alamos Gold 2.08% 1.07% 0.82%

Analyst Ratings

This is a summary of recent ratings and recommmendations for AngloGold Ashanti and Alamos Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AngloGold Ashanti 1 2 4 0 2.43
Alamos Gold 0 3 2 0 2.40

AngloGold Ashanti currently has a consensus price target of $11.50, indicating a potential upside of 28.06%. Alamos Gold has a consensus price target of $10.83, indicating a potential upside of 76.15%. Given Alamos Gold’s higher possible upside, analysts clearly believe Alamos Gold is more favorable than AngloGold Ashanti.

Institutional and Insider Ownership

31.4% of AngloGold Ashanti shares are held by institutional investors. Comparatively, 63.0% 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.

Risk & Volatility

AngloGold Ashanti has a beta of -1.4, indicating that its share price is 240% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Valuation & Earnings

This table compares AngloGold Ashanti and Alamos Gold’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AngloGold Ashanti $4.25 billion 0.86 $63.00 million N/A N/A
Alamos Gold $482.20 million 4.96 -$17.90 million $0.02 307.50

AngloGold Ashanti has higher revenue and earnings than Alamos Gold.

Summary

Alamos Gold beats AngloGold Ashanti on 7 of the 13 factors compared between the two stocks.

AngloGold Ashanti Company Profile

AngloGold Ashanti Limited (AngloGold Ashanti) is a gold mining company. The Company’s business activities span the spectrum of the mining value chain. Its main product is gold. Its portfolio includes over 17 mines in approximately nine countries. It also produces silver, uranium and sulfuric acid as by-products. The Company operates through four segments: South Africa, Continental Africa, Australasia and Americas. Its South African operations comprise over four mines and surface production facilities, which include the Vaal River operations, including Kopanang and Moab Khotsong; The West Wits operations, including Mponeng and TauTona, and surface operations. It has operations in Continental Africa in locations, including Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania. The Australasia segment includes the operations in Australia. It consists of Sunrise Dam and Tropicana. The Americas segment includes the operations in Argentina, Brazil and the United States.

Alamos Gold 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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