Head to Head Review: OR Royalties (NYSE:OR) versus DPM Metals (OTCMKTS:DPMLF)

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

Dividends

DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. OR Royalties pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. DPM Metals pays out 5.3% of its earnings in the form of a dividend. OR Royalties pays out 16.7% 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 raised 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.

Analyst Ratings

This is a summary of current recommendations for DPM Metals and OR Royalties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DPM Metals	0	2	3	0	2.60
OR Royalties	0	5	3	1	2.56

OR Royalties has a consensus target price of $41.00, suggesting a potential upside of 19.72%. Given OR Royalties’ higher possible upside, analysts plainly believe OR Royalties is more favorable than DPM Metals.

Institutional and Insider 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, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

DPM Metals has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares DPM Metals and OR Royalties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DPM Metals	50.26%	25.66%	21.67%
OR Royalties	78.04%	16.41%	14.51%

Earnings & Valuation

This table compares DPM Metals and OR Royalties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$950.48 million	10.04	$369.23 million	$3.04	14.31
OR Royalties	$277.37 million	23.01	$206.09 million	$1.50	22.83

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.

Summary

OR Royalties beats DPM Metals on 9 of the 17 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 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.