Contrasting Allied Gold (NYSE:AAUC) and Kinross Gold (NYSE:KGC)

Kinross Gold (NYSE:KGC) and Allied Gold (NYSE:AAUC) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Kinross Gold and Allied Gold”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$6.44 billion	4.78	$948.80 million	$1.43	17.81
Allied Gold	$730.38 million	2.79	-$115.63 million	($0.36)	-45.68

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

Profitability

This table compares Kinross Gold and Allied Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinross Gold	25.18%	20.04%	13.11%
Allied Gold	-3.58%	24.32%	7.40%

Insider & Institutional Ownership

63.7% of Kinross Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Kinross Gold and Allied Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinross Gold	0	3	8	4	3.07
Allied Gold	1	1	0	1	2.33

Kinross Gold currently has a consensus target price of $27.56, indicating a potential upside of 8.23%. Given Kinross Gold’s stronger consensus rating and higher probable upside, research analysts plainly believe Kinross Gold is more favorable than Allied Gold.

Summary

Kinross Gold beats Allied Gold on 13 of the 14 factors compared between the two stocks.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.

About Allied Gold

Allied Gold Corporation is a gold producer. It operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia. Allied Gold Corporation is based in Canada.