Head to Head Review: Alamos Gold (NYSE:AGI) vs. DPM Metals (OTCMKTS:DPMLF)

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

Institutional & Insider Ownership

64.3% of Alamos Gold shares are owned by institutional investors. 0.5% of Alamos Gold shares are owned by company insiders. Comparatively, 0.3% of DPM Metals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Alamos Gold pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. DPM Metals pays an annual dividend of $0.16 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. DPM Metals pays out 9.2% 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.

Profitability

This table compares Alamos Gold and DPM Metals’ 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%
DPM Metals	39.03%	22.84%	19.66%

Analyst Ratings

This is a breakdown of recent recommendations for Alamos Gold and DPM Metals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamos Gold	0	1	10	3	3.14
DPM Metals	0	1	3	4	3.38

Alamos Gold currently has a consensus target price of $43.00, indicating a potential upside of 6.86%. Given Alamos Gold’s higher probable upside, equities analysts clearly believe Alamos Gold is more favorable than DPM Metals.

Valuation & Earnings

This table compares Alamos Gold and DPM Metals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alamos Gold	$1.35 billion	12.54	$284.30 million	$1.28	31.44
DPM Metals	$606.99 million	12.32	$235.88 million	$1.74	19.37

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

Summary

Alamos Gold beats DPM Metals on 8 of the 15 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 DPM Metals

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition, exploration, development, mining, and processing of precious metals. The company primarily explores for gold, copper, and silver deposits. It holds a portfolio of projects located in Bulgaria, Namibia, Serbia, and Ecuador. The company is based in Toronto, Canada.