Iamgold (NYSE:IAG) vs. Allied Gold (NYSE:AAUC) Head to Head Analysis

Allied Gold (NYSE:AAUC) and Iamgold (NYSE:IAG) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Allied Gold and Iamgold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gold	$730.38 million	3.23	-$115.63 million	($0.64)	-31.98
Iamgold	$1.63 billion	5.03	$819.60 million	$1.39	10.27

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

Analyst Ratings

This is a summary of recent recommendations for Allied Gold and Iamgold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gold	0	0	0	1	4.00
Iamgold	0	3	7	2	2.92

Iamgold has a consensus target price of $12.85, suggesting a potential downside of 9.98%. Given Iamgold’s higher possible upside, analysts plainly believe Iamgold is more favorable than Allied Gold.

Profitability

This table compares Allied Gold and Iamgold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Gold	-13.41%	30.88%	9.23%
Iamgold	40.61%	8.54%	5.37%

Insider and Institutional Ownership

47.1% of Iamgold shares are held by institutional investors. 0.2% of Iamgold shares are held by 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.

Summary

Iamgold beats Allied Gold on 11 of the 14 factors compared between the two stocks.

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.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.