Allied Gold (NYSE:AAUC – Get Free Report) and Newmont (NYSE:NEM – Get Free Report) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Earnings and Valuation
This table compares Allied Gold and Newmont”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allied Gold | $730.38 million | 3.98 | -$115.63 million | ($0.36) | -64.80 |
| Newmont | $18.68 billion | 5.93 | $3.35 billion | $6.44 | 15.76 |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Allied Gold and Newmont, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allied Gold | 1 | 0 | 0 | 2 | 3.00 |
| Newmont | 0 | 4 | 13 | 5 | 3.05 |
Newmont has a consensus target price of $96.37, indicating a potential downside of 5.07%. Given Newmont’s stronger consensus rating and higher possible upside, analysts clearly believe Newmont is more favorable than Allied Gold.
Profitability
This table compares Allied Gold and Newmont’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allied Gold | -3.58% | 24.32% | 7.40% |
| Newmont | 33.42% | 20.35% | 11.68% |
Institutional and Insider Ownership
68.9% of Newmont shares are held by institutional investors. 0.1% of Newmont shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Newmont beats Allied Gold on 13 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 Newmont
Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.
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