Critical Survey: Alamos Gold (NYSE:AGI) & Minco Capital (OTCMKTS:MGHCF)

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

Institutional & Insider Ownership

64.3% of Alamos Gold shares are held by institutional investors. 0.5% of Alamos Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Alamos Gold has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Minco Capital has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Valuation & Earnings

This table compares Alamos Gold and Minco Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alamos Gold	$1.35 billion	12.53	$284.30 million	$1.28	31.40
Minco Capital	N/A	N/A	-$290,000.00	$0.02	4.00

Alamos Gold has higher revenue and earnings than Minco Capital. Minco Capital is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alamos Gold	33.46%	12.36%	8.33%
Minco Capital	N/A	28.01%	27.23%

Analyst Recommendations

This is a summary of current ratings for Alamos Gold and Minco Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamos Gold	0	1	9	3	3.15
Minco Capital	0	0	0	0	0.00

Alamos Gold presently has a consensus target price of $45.50, suggesting a potential upside of 13.21%. Given Alamos Gold’s stronger consensus rating and higher possible upside, research analysts plainly believe Alamos Gold is more favorable than Minco Capital.

Summary

Alamos Gold beats Minco Capital on 12 of the 14 factors compared between the two stocks.

About Alamos Gold

Alamos Gold Inc. engages in the acquisition, exploration, development, and extraction of precious metals in Canada and Mexico. The company primarily explores for gold deposits. It holds 100% interest in the Young-Davidson mine and Island Gold mine located in the Ontario, Canada; Mulatos mine located in the Sonora, Mexico; and Lynn Lake project situated in the Manitoba, Canada. The company also holds interest in the Quartz Mountain project located in the Oregon United states. Alamos Gold Inc. was founded in 2003 and is based in Toronto, Canada.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.