Comparing Barrick Gold (ABX) & Alamos Gold Inc (US) (AGI)

Alamos Gold Inc (US) (NYSE: AGI) and Barrick Gold (NYSE:ABX) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Dividends

Alamos Gold Inc (US) pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Barrick Gold pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Alamos Gold Inc (US) 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. Barrick Gold pays out 6.4% of its earnings in the form of a dividend. Barrick Gold is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

63.0% of Alamos Gold Inc (US) shares are held by institutional investors. Comparatively, 55.6% of Barrick Gold shares are held by institutional investors. 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Alamos Gold Inc (US) and Barrick Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alamos Gold Inc (US) 0 3 3 0 2.50
Barrick Gold 1 11 2 0 2.07

Alamos Gold Inc (US) currently has a consensus price target of $9.80, indicating a potential upside of 63.88%. Barrick Gold has a consensus price target of $18.45, indicating a potential upside of 27.95%. Given Alamos Gold Inc (US)’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Alamos Gold Inc (US) is more favorable than Barrick Gold.

Profitability

This table compares Alamos Gold Inc (US) and Barrick Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alamos Gold Inc (US) 2.08% 1.07% 0.82%
Barrick Gold 25.72% 7.73% 3.37%

Earnings & Valuation

This table compares Alamos Gold Inc (US) and Barrick Gold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alamos Gold Inc (US) $482.20 million 4.82 -$17.90 million $0.02 299.00
Barrick Gold $8.56 billion 1.97 $655.00 million $1.87 7.71

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

Volatility and Risk

Alamos Gold Inc (US) has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Barrick Gold has a beta of -0.42, suggesting that its share price is 142% less volatile than the S&P 500.

Summary

Barrick Gold beats Alamos Gold Inc (US) on 8 of the 15 factors compared between the two stocks.

About Alamos Gold Inc (US)

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 Barrick Gold

Barrick Gold Corporation (Barrick) is a gold mining company. The Company is principally engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments include Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Acacia Mining plc (Acacia), Pascua-Lama and Other Mines. Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary, Acacia, owns gold mines and exploration properties in Africa. It also holds interest in gold mines, including Porgera and Kalgoorlie, and copper mines, such as Zaldivar and Lumwana. The Pascua-Lama project is located on the border between Chile and Argentina. The Company has nine producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.

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