Critical Analysis: U.S. GoldMining (NASDAQ:USGO) vs. Alamos Gold (NYSE:AGI)

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

Valuation and Earnings

This table compares Alamos Gold and U.S. GoldMining”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	13.63	$284.30 million	$1.28	34.17
U.S. GoldMining	N/A	N/A	-$8.48 million	($0.53)	-20.49

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

Analyst Recommendations

This is a breakdown of current ratings for Alamos Gold and U.S. GoldMining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamos Gold	0	1	9	2	3.08
U.S. GoldMining	1	0	1	0	2.00

Alamos Gold presently has a consensus price target of $45.50, indicating a potential upside of 4.04%. U.S. GoldMining has a consensus price target of $26.50, indicating a potential upside of 144.01%. Given U.S. GoldMining’s higher probable upside, analysts plainly believe U.S. GoldMining is more favorable than Alamos Gold.

Risk & Volatility

Alamos Gold has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

Profitability

This table compares Alamos Gold and U.S. GoldMining’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%
U.S. GoldMining	N/A	-175.80%	-145.28%

Institutional and Insider Ownership

64.3% of Alamos Gold shares are owned by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are owned by institutional investors. 0.5% of Alamos Gold shares are owned by company insiders. Comparatively, 2.5% of U.S. GoldMining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Alamos Gold beats U.S. GoldMining on 11 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 U.S. GoldMining

U.S. GoldMining Inc., an exploration stage company, engages in the exploration and development of mineral properties in the United States. The company's primary asset is the 100%-owned Whistler exploration property, a gold-copper exploration project comprising mining claims totaling 53,700 acres located in Yentna Mining District, Alaska. The company was incorporated in 2015 and is based in Vancouver, Canada. U.S. GoldMining Inc. operates as a subsidiary of GoldMining Inc.