Alamos Gold (NYSE:AGI) & Jaguar Mining (OTCMKTS:JAGGF) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alamos Gold	33.46%	12.36%	8.33%
Jaguar Mining	-10.83%	3.72%	2.55%

Volatility and Risk

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of current ratings for Alamos Gold and Jaguar Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamos Gold	0	1	10	3	3.14
Jaguar Mining	0	0	0	0	0.00

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alamos Gold	$1.35 billion	13.26	$284.30 million	$1.28	33.25
Jaguar Mining	$158.63 million	3.30	-$1.29 million	($0.19)	-32.34

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.

Dividends

Alamos Gold pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Alamos Gold pays out 7.8% of its earnings in the form of a dividend. Jaguar Mining pays out -15.8% 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.

Summary

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

About Alamos Gold

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.

About Jaguar Mining

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.