Analyzing DPM Metals (OTCMKTS:DPMLF) and Largo (NYSE:LGO)

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

Valuation & Earnings

This table compares Largo and DPM Metals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Largo	$127.06 million	0.42	-$30.34 million	($1.07)	-0.44
DPM Metals	$950.48 million	9.60	$369.23 million	$3.04	13.69

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

Institutional & Insider Ownership

64.1% of Largo shares are held by institutional investors. 0.3% of Largo shares are held by company insiders. Comparatively, 0.3% of DPM Metals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Largo	-35.10%	-22.61%	-14.29%
DPM Metals	50.26%	25.66%	21.67%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Largo and DPM Metals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Largo	0	0	2	0	3.00
DPM Metals	0	2	3	0	2.60

Largo presently has a consensus price target of $2.10, suggesting a potential upside of 345.58%. Given Largo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Largo is more favorable than DPM Metals.

Risk and Volatility

Largo has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, DPM Metals has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Summary

DPM Metals beats Largo on 10 of the 14 factors compared between the two stocks.

About Largo

Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and is headquartered in Toronto, 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.