MAG Silver Corp (NYSE: MAG) and Dorchester Minerals, L.P. (NASDAQ:DMLP) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for MAG Silver Corp and Dorchester Minerals, L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MAG Silver Corp 0 0 5 2 3.29
Dorchester Minerals, L.P. 0 0 0 0 N/A

MAG Silver Corp currently has a consensus price target of $17.33, indicating a potential upside of 44.44%. Given MAG Silver Corp’s higher probable upside, equities research analysts plainly believe MAG Silver Corp is more favorable than Dorchester Minerals, L.P..

Earnings and Valuation

This table compares MAG Silver Corp and Dorchester Minerals, L.P.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MAG Silver Corp N/A N/A -$6.98 million N/A N/A
Dorchester Minerals, L.P. $45.34 million 10.61 $38.15 million $0.95 15.68

Dorchester Minerals, L.P. has higher revenue and earnings than MAG Silver Corp.

Profitability

This table compares MAG Silver Corp and Dorchester Minerals, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MAG Silver Corp N/A -3.01% -3.00%
Dorchester Minerals, L.P. 65.28% 41.71% 41.15%

Institutional & Insider Ownership

13.3% of Dorchester Minerals, L.P. shares are held by institutional investors. 9.2% of Dorchester Minerals, L.P. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Dorchester Minerals, L.P. pays an annual dividend of $1.29 per share and has a dividend yield of 8.7%. MAG Silver Corp does not pay a dividend. Dorchester Minerals, L.P. pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Dorchester Minerals, L.P. beats MAG Silver Corp on 8 of the 12 factors compared between the two stocks.

About MAG Silver Corp

MAG Silver Corp. is a mineral exploration and development company. The Company is focused on the acquisition, exploration and development of projects located within the Mexican silver belt. The Company operates through the exploration of mineral properties in Mexico segment. The Company’s projects include Juanicipio Property, Cinco De Mayo Property and Guigui Property. Juanicipio Property is located in the Fresnillo District, Zacatecas State, Mexico. The Juanicipio Property includes silver-gold-lead-zinc epithermal vein deposit. The Company owns the mineral concessions comprising the Cinco de Mayo Property. The Cinco de Mayo Property is located approximately 190 kilometers northwest of the city of Chihuahua, in northern Chihuahua State, Mexico, and covers approximately 25,110 hectares. The Company owns the Guigui project located in the Santa Eulalia Mining District of Chihuahua, Mexico. Guigui project consists of approximately 8,300 hectares.

About Dorchester Minerals, L.P.

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.

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