OR Royalties (NYSE:OR – Get Free Report) and DPM Metals (OTCMKTS:DPMLF – Get Free Report) are both mid-cap materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Risk and Volatility
OR Royalties has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, DPM Metals has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
Earnings and Valuation
This table compares OR Royalties and DPM Metals”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OR Royalties | $277.37 million | 23.01 | $206.09 million | $1.50 | 22.83 |
| DPM Metals | $950.48 million | 10.04 | $369.23 million | $3.04 | 14.31 |
DPM Metals has higher revenue and earnings than OR Royalties. DPM Metals is trading at a lower price-to-earnings ratio than OR Royalties, indicating that it is currently the more affordable of the two stocks.
Dividends
OR Royalties pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. OR Royalties pays out 16.7% of its earnings in the form of a dividend. DPM Metals pays out 5.3% 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. OR Royalties has increased its dividend for 1 consecutive years. OR Royalties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares OR Royalties and DPM Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OR Royalties | 78.04% | 16.41% | 14.51% |
| DPM Metals | 50.26% | 25.66% | 21.67% |
Insider and Institutional Ownership
68.5% of OR Royalties shares are held by institutional investors. 0.3% of DPM Metals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations for OR Royalties and DPM Metals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OR Royalties | 0 | 5 | 3 | 1 | 2.56 |
| DPM Metals | 0 | 2 | 3 | 0 | 2.60 |
OR Royalties presently has a consensus price target of $41.00, indicating a potential upside of 19.72%. Given OR Royalties’ higher probable upside, research analysts clearly believe OR Royalties is more favorable than DPM Metals.
Summary
OR Royalties beats DPM Metals on 9 of the 17 factors compared between the two stocks.
About OR Royalties
Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.
About DPM Metals
Dundee Precious Metals Inc., a gold mining company, engages in the acquisition, exploration, development, mining, and processing of precious metals. The company primarily explores for gold, copper, and silver deposits. It holds a portfolio of projects located in Bulgaria, Namibia, Serbia, and Ecuador. The company is based in Toronto, Canada.
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