Head to Head Comparison: Alamos Gold (AGI) and Compania de Minas Buenaventura SAA (BVN)
Alamos Gold (NYSE: AGI) and Compania de Minas Buenaventura SAA (NYSE:BVN) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Risk & Volatility
Alamos Gold has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Compania de Minas Buenaventura SAA has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
This table compares Alamos Gold and Compania de Minas Buenaventura SAA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alamos Gold||$482.20 million||5.43||-$17.90 million||$0.02||336.50|
|Compania de Minas Buenaventura SAA||$1.07 billion||3.53||-$323.49 million||($1.39)||-10.68|
Alamos Gold has higher earnings, but lower revenue than Compania de Minas Buenaventura SAA. Compania de Minas Buenaventura SAA is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
63.0% of Alamos Gold shares are held by institutional investors. Comparatively, 45.3% of Compania de Minas Buenaventura SAA shares are held by institutional investors. 19.3% of Compania de Minas Buenaventura SAA shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Alamos Gold and Compania de Minas Buenaventura SAA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Compania de Minas Buenaventura SAA||-29.67%||-11.11%||-7.90%|
Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Compania de Minas Buenaventura SAA pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. 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. Compania de Minas Buenaventura SAA pays out -5.8% of its earnings in the form of a dividend. Compania de Minas Buenaventura SAA is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and target prices for Alamos Gold and Compania de Minas Buenaventura SAA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Compania de Minas Buenaventura SAA||0||2||1||0||2.33|
Alamos Gold currently has a consensus price target of $10.38, suggesting a potential upside of 54.16%. Compania de Minas Buenaventura SAA has a consensus price target of $17.30, suggesting a potential upside of 16.58%. Given Alamos Gold’s higher possible upside, equities research analysts clearly believe Alamos Gold is more favorable than Compania de Minas Buenaventura SAA.
Alamos Gold beats Compania de Minas Buenaventura SAA on 10 of the 15 factors compared between the two stocks.
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.
About Compania de Minas Buenaventura SAA
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.
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