Alio Gold (NYSE: ALO) and DRDGOLD Limited (NYSE:DRD) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Valuation & Earnings

This table compares Alio Gold and DRDGOLD Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alio Gold $121.56 million 1.59 $42.14 million N/A N/A
DRDGOLD Limited $187.39 million 0.80 $19.61 million N/A N/A

Alio Gold has higher revenue, but lower earnings than DRDGOLD Limited.

Profitability

This table compares Alio Gold and DRDGOLD Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alio Gold N/A N/A N/A
DRDGOLD Limited N/A N/A N/A

Dividends

DRDGOLD Limited pays an annual dividend of $0.07 per share and has a dividend yield of 2.0%. Alio Gold does not pay a dividend. Alio Gold has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

20.0% of DRDGOLD Limited shares are held by institutional investors. 1.0% of DRDGOLD Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alio Gold and DRDGOLD Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alio Gold 0 1 0 0 2.00
DRDGOLD Limited 0 1 0 0 2.00

Summary

DRDGOLD Limited beats Alio Gold on 5 of the 8 factors compared between the two stocks.

Alio Gold Company Profile

Alio Gold Inc, formerly Timmins Gold Corp, is a Canada-based gold producer engaged in the operation, development, exploration and acquisition of resource properties in Mexico through its subsidiaries, Timmins Goldcorp Mexico, S.A. de C.V. and Molimentales del Noroeste, S.A. de C.V. (MdN). MdN owns the San Francisco Mine in Sonora, Mexico. MdN also owns the Caballo Blanco Property, an exploration and evaluation asset in Veracruz, Mexico. The Mine and the La Chicharra pit are collectively known as the Gold Property. The Company also holds the Ana Paula gold project, which is an advanced stage development project in the Guerrero Gold Belt. The Guerrero Gold Belt project consists of over two claims totaling approximately 4,200 hectares at the north-west end of the Guerrero Gold Belt, with approximately 38,000 additional hectares in the surrounding area. Ana Paula is located in the north central part of the State of Guerrero in southern Mexico, 180 kilometers from Mexico City.

DRDGOLD Limited Company Profile

DRDGOLD Limited is a gold mining company. The Company is engaged in gold production by tailings retreatment. The Company is focused on the recovery of lower-risk, higher-margin ounces primarily from its metallurgical plant located approximately 50 kilometers east of Johannesburg in Brakpan. The Company owns approximately 100% of its holding company, Ergo Mining Operations Proprietary Limited (EMO). Ergo Mining Proprietary Limited (Ergo) is owned by EMO. Ergo has a vast footprint adjacent to Johannesburg on the central and eastern Witwatersrand of South Africa. Its assets cover an area of approximately 62 kilometers from east to west and over 25 kilometers from north to south. The Ergo operation has over two metallurgical plants in operation, including Knights plant and The Ergo plant. The Knights plant in Germiston is treating the Cason dump and depositing waste on the Brakpan tailings facility (BTF). The Ergo plant has a total treatment capacity of 300,000 tons per month (tpm).

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