Allied Gold (NYSE:AAUC – Get Free Report) and Agnico Eagle Mines (NYSE:AEM – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Profitability
This table compares Allied Gold and Agnico Eagle Mines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allied Gold | -3.58% | 24.32% | 7.40% |
| Agnico Eagle Mines | 32.62% | 15.64% | 11.08% |
Institutional & Insider Ownership
68.3% of Agnico Eagle Mines shares are held by institutional investors. 0.5% of Agnico Eagle Mines shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gold | $730.38 million | 3.98 | -$115.63 million | ($0.36) | -64.80 |
| Agnico Eagle Mines | $8.29 billion | 10.55 | $1.90 billion | $6.85 | 25.43 |
Agnico Eagle Mines has higher revenue and earnings than Allied Gold. Allied Gold is trading at a lower price-to-earnings ratio than Agnico Eagle Mines, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Allied Gold and Agnico Eagle Mines, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gold | 1 | 0 | 0 | 2 | 3.00 |
| Agnico Eagle Mines | 0 | 3 | 8 | 6 | 3.18 |
Agnico Eagle Mines has a consensus target price of $201.60, suggesting a potential upside of 15.72%. Given Agnico Eagle Mines’ stronger consensus rating and higher possible upside, analysts plainly believe Agnico Eagle Mines is more favorable than Allied Gold.
Summary
Agnico Eagle Mines beats Allied Gold on 13 of the 14 factors compared between the two stocks.
About Allied Gold
Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in Canada.
About Agnico Eagle Mines
Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.
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