Head to Head Review: Alumina (OTCMKTS:AWCMY) versus Iamgold (NYSE:IAG)

Iamgold (NYSE:IAG) and Alumina (OTCMKTS:AWCMY) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Risk and Volatility

Iamgold has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Alumina has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Iamgold and Alumina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iamgold	31.40%	29.61%	21.07%
Alumina	N/A	N/A	N/A

Institutional and Insider Ownership

47.1% of Iamgold shares are owned by institutional investors. 0.2% of Iamgold shares are owned by company insiders. Comparatively, 1.0% of Alumina shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Iamgold and Alumina”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iamgold	$2.85 billion	3.69	$664.40 million	$1.72	10.65
Alumina	$500,000.00	5,353.60	-$150.10 million	N/A	N/A

Iamgold has higher revenue and earnings than Alumina.

Analyst Recommendations

This is a summary of recent ratings and target prices for Iamgold and Alumina, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iamgold	0	3	5	1	2.78
Alumina	0	0	0	0	0.00

Iamgold currently has a consensus target price of $19.00, indicating a potential upside of 3.75%. Given Iamgold’s stronger consensus rating and higher probable upside, equities analysts clearly believe Iamgold is more favorable than Alumina.

Summary

Iamgold beats Alumina on 10 of the 13 factors compared between the two stocks.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About Alumina

Alumina Limited, through its 40% interest in Alcoa World Alumina and Chemicals, engages in bauxite mining, alumina refining, and aluminum smelting businesses. It operates bauxite mines and alumina refineries in Australia, Guinea, Brazil, Spain, and Saudi Arabia; and holds a 55% interest in the Portland aluminum smelter in Victoria, Australia. The company was formerly known as WMC Limited and changed its name to Alumina Limited in December 2002. Alumina Limited was incorporated in 1970 and is headquartered in Southbank, Australia.