In Lagrangian particle-based methods such as smoothed particle hydrodynamics (SPH), computing totally divergence-free velocity field in a flow domain with the smallest error possible is the most critical issue, which might be achieved through solving pressure Poisson equation implicitly with higher particle resolutions. However, implicit solutions are computationally expensive and may be particularly challenging in the solution of multiphase flows with highly nonlinear deformations as well as fluid-structure interaction problems. Augmented Lagrangian SPH (ALSPH) method is a new alternative algorithm as a prevalent pressure solver where the divergence-free velocity field is achieved by iterative calculation of velocity and pressure fields. This study investigates the performance of the ALSPH technique by solving a challenging flow problem such as two-dimensional flow around a cylinder within the Reynolds number range of 50 to 500 in terms of improved robustness, accuracy, and computational efficiency. The same flow conditions are also simulated using the conventional weakly compressible SPH (WCSPH) method. The results of ALSPH and WCSPH solutions are not only compared in terms of numerical validation/verification studies, but also rigorous investigations are performed for all related physical flow characteristics, namely, hydrodynamic coefficients, frequency domain analyses, and velocity divergence fields.