Financial Comparison: Alamos Gold (AGI) vs. Pershing Gold (PGLC)

Pershing Gold (NASDAQ: PGLC) and Alamos Gold (NYSE:AGI) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Volatility & Risk

Pershing Gold has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Earnings and Valuation

This table compares Pershing Gold and Alamos Gold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pershing Gold N/A N/A -$15.63 million ($0.54) -4.44
Alamos Gold $482.20 million 5.37 -$17.90 million $0.02 333.00

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

Profitability

This table compares Pershing Gold and Alamos Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pershing Gold N/A -41.82% -39.57%
Alamos Gold 2.08% 1.07% 0.82%

Institutional and Insider Ownership

19.5% of Pershing Gold shares are owned by institutional investors. Comparatively, 63.0% of Alamos Gold shares are owned by institutional investors. 36.8% of Pershing Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Pershing Gold does not pay a dividend. Alamos Gold 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pershing Gold and Alamos Gold, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pershing Gold 0 0 3 0 3.00
Alamos Gold 0 4 2 0 2.33

Pershing Gold presently has a consensus target price of $8.00, suggesting a potential upside of 233.33%. Alamos Gold has a consensus target price of $10.38, suggesting a potential upside of 55.78%. Given Pershing Gold’s stronger consensus rating and higher probable upside, research analysts clearly believe Pershing Gold is more favorable than Alamos Gold.

Summary

Alamos Gold beats Pershing Gold on 8 of the 15 factors compared between the two stocks.

About Pershing Gold

Pershing Gold Corporation is a gold and precious metals exploration company. The Company focuses on exploration, development and mining opportunities in Nevada. The Company is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. The Company operates its business directly and also through its subsidiary, Gold Acquisition Corp. Gold Acquisition Corp. owns and is engaged in conducting exploration on the Relief Canyon Mine property in northwestern Nevada. The Company is engaged in conducting exploration on the Relief Canyon expansion properties. The Relief Canyon Mine includes approximately three open pit mines, heap leach pads consisting of approximately six cells, approximately two solution ponds and a cement block constructed adsorption desorption-recovery (ADR) solution processing circuit. The Pershing Pass property includes approximately 490 lode mining claims. The Company has not generated any revenues.

About Alamos Gold

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.

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