Newmont (NYSE:NEM – Get Free Report) and Allied Gold (NYSE:AAUC – Get Free Report) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Institutional & Insider Ownership
68.9% of Newmont shares are held by institutional investors. 0.1% of Newmont shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Newmont and Allied Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Newmont | 33.42% | 20.35% | 11.68% |
| Allied Gold | -3.58% | 24.32% | 7.40% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newmont | 0 | 4 | 13 | 5 | 3.05 |
| Allied Gold | 1 | 0 | 0 | 2 | 3.00 |
Newmont presently has a consensus price target of $96.37, indicating a potential downside of 7.97%. Given Newmont’s stronger consensus rating and higher probable upside, equities analysts clearly believe Newmont is more favorable than Allied Gold.
Earnings and Valuation
This table compares Newmont and Allied Gold”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newmont | $18.68 billion | 6.12 | $3.35 billion | $6.44 | 16.26 |
| Allied Gold | $730.38 million | 4.18 | -$115.63 million | ($0.36) | -67.94 |
Newmont has higher revenue and earnings than Allied Gold. Allied Gold is trading at a lower price-to-earnings ratio than Newmont, indicating that it is currently the more affordable of the two stocks.
Summary
Newmont beats Allied Gold on 13 of the 14 factors compared between the two stocks.
About Newmont
Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.
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.
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