Alamos Gold (NYSE:AGI – Get Free Report) and Worthington Steel (NYSE:WS – Get Free Report) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Volatility and Risk
Alamos Gold has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Worthington Steel has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500.
Institutional & Insider Ownership
64.3% of Alamos Gold shares are owned by institutional investors. Comparatively, 45.4% of Worthington Steel shares are owned by institutional investors. 0.5% of Alamos Gold shares are owned by insiders. Comparatively, 2.7% of Worthington Steel shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Alamos Gold and Worthington Steel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alamos Gold | 46.66% | 18.95% | 13.43% |
| Worthington Steel | -0.56% | 7.49% | 3.14% |
Valuation & Earnings
This table compares Alamos Gold and Worthington Steel”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alamos Gold | $1.81 billion | 7.21 | $885.80 million | $2.51 | 12.42 |
| Worthington Steel | $3.44 billion | 0.54 | $8.50 million | ($0.61) | -59.15 |
Alamos Gold has higher earnings, but lower revenue than Worthington Steel. Worthington Steel 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 $0.16 per share and has a dividend yield of 0.5%. Worthington Steel pays an annual dividend of $0.64 per share and has a dividend yield of 1.8%. Alamos Gold pays out 6.4% of its earnings in the form of a dividend. Worthington Steel pays out -104.9% 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. Worthington Steel is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings for Alamos Gold and Worthington Steel, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alamos Gold | 0 | 1 | 8 | 0 | 2.89 |
| Worthington Steel | 1 | 1 | 1 | 0 | 2.00 |
Alamos Gold presently has a consensus price target of $47.50, suggesting a potential upside of 52.43%. Worthington Steel has a consensus price target of $46.00, suggesting a potential upside of 27.49%. Given Alamos Gold’s stronger consensus rating and higher possible upside, analysts plainly believe Alamos Gold is more favorable than Worthington Steel.
Summary
Alamos Gold beats Worthington Steel on 11 of the 16 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 Worthington Steel
Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.
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