Head to Head Comparison: Gold Reserve (OTCMKTS:GDRZF) versus Alamos Gold (OTCMKTS:AGI)

Gold Reserve (OTCMKTS:GDRZF) and Alamos Gold (NYSE:AGI) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Dividends

Gold Reserve pays an annual dividend of $0.76 per share and has a dividend yield of 42.2%. Alamos Gold pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Alamos Gold pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

56.9% of Alamos Gold shares are held by institutional investors. 12.8% of Gold Reserve 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.

Risk and Volatility

Gold Reserve has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Gold Reserve N/A -19.14% -17.91%
Alamos Gold -8.88% 0.67% 0.53%

Earnings and Valuation

This table compares Gold Reserve 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
Gold Reserve $51.57 million 3.33 $41.86 million N/A N/A
Alamos Gold $651.80 million 4.05 -$72.60 million $0.05 135.00

Gold Reserve has higher earnings, but lower revenue than Alamos Gold.

Analyst Ratings

This is a summary of current recommendations for Gold Reserve and Alamos Gold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Reserve 0 0 0 0 N/A
Alamos Gold 0 4 4 0 2.50

Alamos Gold has a consensus target price of $6.77, suggesting a potential upside of 0.27%. Given Alamos Gold’s higher possible upside, analysts plainly believe Alamos Gold is more favorable than Gold Reserve.

Summary

Alamos Gold beats Gold Reserve on 8 of the 13 factors compared between the two stocks.

About Gold Reserve

Gold Reserve Inc., an exploration stage company, acquires, explores, and develops mineral properties. The company primarily focuses on the Siembra Minera Project, an open pit gold-copper mining project located in Bolivar, Venezuela. It also has an interest in the LMS Gold Project in Alaska. The company was founded in 1956 and is based in Spokane, Washington.

About Alamos Gold

Alamos Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and extraction of gold deposits in North America. It also explores for silver and precious metals. The company's flagship project is the Young-Davidson mine, which includes contiguous mineral leases and claims totaling 11,000 acres located in Northern Ontario, Canada. It also holds interests in a portfolio of development stage projects in Turkey, Canada, Mexico, and the United States. The company was formerly known as AuRico Gold Inc. and changed its name to Alamos Gold Inc. in July 2015. The company is headquartered in Toronto, Canada.

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