Iamgold (NYSE:IAG – Get Free Report) and Avalon Rare Metals (OTCMKTS:AVLNF – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Earnings & Valuation
This table compares Iamgold and Avalon Rare Metals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Iamgold | $3.68 billion | 2.88 | $664.40 million | $1.98 | 9.46 |
| Avalon Rare Metals | $190,000.00 | 94.66 | -$20.85 million | ($118.88) | -0.03 |
Iamgold has higher revenue and earnings than Avalon Rare Metals. Avalon Rare Metals is trading at a lower price-to-earnings ratio than Iamgold, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Iamgold has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Avalon Rare Metals has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Iamgold and Avalon Rare Metals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Iamgold | 1 | 2 | 6 | 1 | 2.70 |
| Avalon Rare Metals | 0 | 1 | 0 | 0 | 2.00 |
Iamgold currently has a consensus target price of $22.71, suggesting a potential upside of 21.32%. Given Iamgold’s stronger consensus rating and higher probable upside, equities analysts clearly believe Iamgold is more favorable than Avalon Rare Metals.
Insider & Institutional Ownership
47.1% of Iamgold shares are owned by institutional investors. 0.2% of Iamgold shares are owned by insiders. Comparatively, 2.4% of Avalon Rare Metals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Iamgold and Avalon Rare Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Iamgold | 31.40% | 28.97% | 20.87% |
| Avalon Rare Metals | -10,843.52% | -11.10% | -10.24% |
Summary
Iamgold beats Avalon Rare Metals on 13 of the 15 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 Avalon Rare Metals
Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.
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