Critical Comparison: Pelangio Exploration (OTCMKTS:PGXPF) versus Alamos Gold (NYSE:AGI)

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

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of current recommendations for Alamos Gold and Pelangio Exploration, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alamos Gold	0	0	8	3	3.27
Pelangio Exploration	0	0	0	0	0.00

Alamos Gold presently has a consensus price target of $41.00, suggesting a potential upside of 28.41%. Given Alamos Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Alamos Gold is more favorable than Pelangio Exploration.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alamos Gold	22.99%	10.67%	7.16%
Pelangio Exploration	N/A	N/A	-139.54%

Valuation and Earnings

This table compares Alamos Gold and Pelangio Exploration”s top-line 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	9.97	$284.30 million	$0.83	38.47
Pelangio Exploration	N/A	N/A	-$550,000.00	N/A	N/A

Alamos Gold has higher revenue and earnings than Pelangio Exploration.

Volatility & Risk

Alamos Gold has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Summary

Alamos Gold beats Pelangio Exploration on 12 of the 12 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 Pelangio Exploration

Pelangio Exploration Inc., a mineral exploration company, engages in acquiring, exploring, and developing mineral properties. It holds interests in various gold properties in Ghana and Canada. The company was incorporated in 2008 and is headquartered in Toronto, Canada.