Reviewing DPM Metals (OTCMKTS:DPMLF) & Barrick Mining (NYSE:B)

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

Dividends

DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Barrick Mining pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. DPM Metals pays out 11.4% of its earnings in the form of a dividend. Barrick Mining pays out 37.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares DPM Metals and Barrick Mining”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$606.99 million	6.44	$235.88 million	$1.40	16.74
Barrick Mining	$12.92 billion	4.31	$2.14 billion	$1.59	20.58

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

Profitability

This table compares DPM Metals and Barrick Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DPM Metals	37.07%	21.68%	18.91%
Barrick Mining	19.99%	8.19%	5.73%

Insider and Institutional Ownership

90.8% of Barrick Mining shares are owned by institutional investors. 0.3% of DPM Metals shares are owned by company insiders. Comparatively, 0.6% of Barrick Mining shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

DPM Metals has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Barrick Mining has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for DPM Metals and Barrick Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DPM Metals	0	1	3	3	3.29
Barrick Mining	0	5	10	2	2.82

Barrick Mining has a consensus price target of $38.10, indicating a potential upside of 16.42%. Given Barrick Mining’s higher probable upside, analysts plainly believe Barrick Mining is more favorable than DPM Metals.

Summary

Barrick Mining beats DPM Metals on 9 of the 17 factors compared between the two stocks.

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.

About Barrick Mining

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
 
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex.  Barrick owns and operates six Tier One gold mines:  Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
 
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.