Contrasting Dorchester Minerals (DMLP) & Rio Alto Mining (NYSE:RIOM)

Dorchester Minerals (NASDAQ: DMLP) and Rio Alto Mining (NYSE:RIOM) are both integrated mining companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Insider and Institutional Ownership

13.5% of Dorchester Minerals shares are owned by institutional investors. 9.2% of Dorchester Minerals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Dorchester Minerals and Rio Alto Mining, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorchester Minerals 0 0 0 0 N/A
Rio Alto Mining 0 0 0 0 N/A

Valuation & Earnings

This table compares Dorchester Minerals and Rio Alto Mining’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dorchester Minerals $37.56 million 13.28 $20.23 million $0.96 16.09
Rio Alto Mining N/A N/A N/A N/A N/A

Dorchester Minerals has higher revenue and earnings than Rio Alto Mining.

Dividends

Dorchester Minerals pays an annual dividend of $1.55 per share and has a dividend yield of 10.0%. Rio Alto Mining does not pay a dividend. 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.

Profitability

This table compares Dorchester Minerals and Rio Alto Mining’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%
Rio Alto Mining N/A N/A N/A

Summary

Dorchester Minerals beats Rio Alto Mining on 7 of the 8 factors compared between the two stocks.

Dorchester Minerals Company Profile

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.

Rio Alto Mining Company Profile

Rio Alto Mining Limited is a Canada-based resource exploration company. The Company is engaged in the business of acquiring, exploring, developing and operating mineral resource properties in Peru. The Company is also engaged in the business of acquiring, exploring, and developing gold resources and advanced stage exploration projects in Peru and Latin America. The Company owns and operates the La Arena Mine and the Shahuindo Gold Projects in northern Peru. The Company is focused on the development of the 21,000 hectares La Arena gold / copper project, located in north central Peru. The La Arena Project consists of 20,673 hectares in 44 concessions located 480 kilometers north-northwest of Lima, the capital of Peru, and approximately 18 kilometers from Huamachuco.

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