Contrasting Iamgold (NYSE:IAG) and DPM Metals (OTCMKTS:DPMLF)

DPM Metals (OTCMKTS:DPMLF) and Iamgold (NYSE:IAG) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings for DPM Metals and Iamgold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DPM Metals	0	1	3	4	3.38
Iamgold	0	3	5	2	2.90

Iamgold has a consensus target price of $15.25, indicating a potential downside of 0.26%. Given Iamgold’s higher possible upside, analysts plainly believe Iamgold is more favorable than DPM Metals.

Insider & Institutional Ownership

47.1% of Iamgold shares are held by institutional investors. 0.3% of DPM Metals shares are held by insiders. Comparatively, 0.2% of Iamgold shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$606.99 million	10.63	$235.88 million	$1.74	16.71
Iamgold	$1.63 billion	5.39	$819.60 million	$0.60	25.48

Iamgold has higher revenue and earnings than DPM Metals. DPM Metals is trading at a lower price-to-earnings ratio than Iamgold, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DPM Metals	39.03%	28.09%	24.85%
Iamgold	15.39%	10.39%	6.72%

Summary

DPM Metals beats Iamgold on 8 of the 14 factors compared between the two stocks.

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.

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.