Critical Survey: Deep Yellow (OTCMKTS:DYLLF) and OR Royalties (NYSE:OR)

OR Royalties (NYSE:OR) and Deep Yellow (OTCMKTS:DYLLF) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Earnings & Valuation

This table compares OR Royalties and Deep Yellow”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OR Royalties	$243.65 million	26.88	$16.27 million	$0.79	44.05
Deep Yellow	$7.51 million	134.23	$4.64 million	N/A	N/A

OR Royalties has higher revenue and earnings than Deep Yellow.

Institutional & Insider Ownership

68.5% of OR Royalties shares are owned by institutional investors. 0.6% of OR Royalties shares are owned 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.

Volatility & Risk

OR Royalties has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Deep Yellow has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for OR Royalties and Deep Yellow, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OR Royalties	0	2	5	2	3.00
Deep Yellow	0	0	0	0	0.00

OR Royalties presently has a consensus target price of $36.25, suggesting a potential upside of 4.18%. Given OR Royalties’ stronger consensus rating and higher possible upside, analysts plainly believe OR Royalties is more favorable than Deep Yellow.

Profitability

This table compares OR Royalties and Deep Yellow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OR Royalties	35.25%	8.56%	7.54%
Deep Yellow	N/A	N/A	N/A

Summary

OR Royalties beats Deep Yellow on 11 of the 13 factors compared between the two stocks.

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.

About Deep Yellow

Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.