Head-To-Head Comparison: Yamana Gold (AUY) vs. Dorchester Minerals (DMLP)

Dorchester Minerals (NASDAQ: DMLP) and Yamana Gold (NYSE:AUY) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Dorchester Minerals and Yamana Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorchester Minerals 0 0 0 0 N/A
Yamana Gold 1 5 3 0 2.22

Yamana Gold has a consensus price target of $3.61, indicating a potential upside of 10.53%. Given Yamana Gold’s higher probable upside, analysts plainly believe Yamana Gold is more favorable than Dorchester Minerals.

Earnings & Valuation

This table compares Dorchester Minerals and Yamana Gold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dorchester Minerals $37.56 million 13.15 $20.23 million $0.96 15.94
Yamana Gold $1.79 billion 1.73 -$307.90 million ($0.37) -8.84

Dorchester Minerals has higher earnings, but lower revenue than Yamana Gold. Yamana Gold is trading at a lower price-to-earnings ratio than Dorchester Minerals, indicating that it is currently the more affordable of the two stocks.

Dividends

Dorchester Minerals pays an annual dividend of $1.55 per share and has a dividend yield of 10.1%. Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Dorchester Minerals pays out 161.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Yamana Gold pays out -5.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

13.5% of Dorchester Minerals shares are owned by institutional investors. Comparatively, 40.6% of Yamana Gold shares are owned by institutional investors. 9.2% of Dorchester Minerals shares are owned by insiders. Comparatively, 2.7% of Yamana Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Dorchester Minerals has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Yamana Gold has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Dorchester Minerals and Yamana Gold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorchester Minerals 64.05% 40.04% 39.40%
Yamana Gold -20.19% 0.71% 0.37%

Summary

Dorchester Minerals beats Yamana Gold on 10 of the 15 factors compared between the two stocks.

About Dorchester Minerals

Dorchester Minerals, L.P. is a limited partnership company. The Company is engaged in the acquisition, ownership and administration of Royalty Properties and net profits interests (NPIs). As of December 31, 2016, the Royalty Properties consisted of producing and nonproducing mineral, royalty, overriding royalty, net profits and leasehold interests located in 574 counties and parishes in 25 states. The NPIs represent net profits overriding royalty interests in various properties owned by the Company. As of December 31, 2016, the Company had completed 270 wells on its Royalty Properties in seven states, and 39 new wells completed on its Properties in three states. The Company owns both a royalty interest and a net profits interest. The Company’s general partner is Dorchester Minerals Management LP.

About Yamana Gold

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

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