Critical Review: Alamos Gold (AGI) and Its Competitors

Alamos Gold (NYSE:AGI) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Alamos Gold to similar businesses based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Dividends

Alamos Gold pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Alamos Gold pays out 6.4% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 11.0% and pay out 10.8% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Alamos Gold and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alamos Gold	$1.81 billion	$885.80 million	10.95
Alamos Gold Competitors	$4.65 billion	$279.61 million	-46.29

Alamos Gold’s peers have higher revenue, but lower earnings than Alamos Gold. Alamos Gold is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

64.3% of Alamos Gold shares are held by institutional investors. Comparatively, 15.8% of shares of all “Metals & Mining” companies are held by institutional investors. 0.5% of Alamos Gold shares are held by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Alamos Gold and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alamos Gold	46.66%	18.95%	13.43%
Alamos Gold Competitors	-1,168,050,136,845,918,000.00%	-53.15%	-2.11%

Risk & Volatility

Alamos Gold has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Alamos Gold’s peers have a beta of 1.00, indicating that their average stock price is 0% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Alamos Gold and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamos Gold	1	0	9	0	2.80
Alamos Gold Competitors	6397	22575	32271	1793	2.47

Alamos Gold presently has a consensus price target of $47.50, indicating a potential upside of 72.79%. As a group, “Metals & Mining” companies have a potential upside of 35.64%. Given Alamos Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Alamos Gold is more favorable than its peers.

Summary

Alamos Gold beats its peers on 10 of the 15 factors compared.

Alamos Gold Company Profile

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.