Reviewing Jaguar Mining (OTCMKTS:JAGGF) and Alamos Gold (NYSE:AGI)

Jaguar Mining (OTCMKTS:JAGGF – Get Free Report) and Alamos Gold (NYSE:AGI – Get Free Report) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Volatility and Risk

Jaguar Mining has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Profitability

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

Earnings & Valuation

This table compares Jaguar Mining and Alamos Gold”s top-line revenue, earnings per share and valuation.

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

Insider and Institutional Ownership

64.3% of Alamos Gold shares are held by institutional investors. 0.6% of Jaguar Mining shares are held by company insiders. Comparatively, 0.5% of Alamos Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Alamos Gold pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Jaguar Mining pays out -15.8% of its earnings in the form of a dividend. Alamos Gold pays out 7.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Jaguar Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Jaguar Mining and Alamos Gold, as reported by MarketBeat.

Alamos Gold has a consensus price target of $43.00, indicating a potential upside of 1.04%. Given Alamos Gold’s stronger consensus rating and higher possible upside, analysts plainly believe Alamos Gold is more favorable than Jaguar Mining.

Summary

Alamos Gold beats Jaguar Mining on 13 of the 17 factors compared between the two stocks.

About Jaguar Mining

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Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.

About Alamos Gold

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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.