Yamana Gold (NYSE: AUY) and Dorchester Minerals (NASDAQ:DMLP) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Yamana Gold and Dorchester Minerals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yamana Gold 1 6 2 0 2.11
Dorchester Minerals 0 0 0 0 N/A

Yamana Gold currently has a consensus price target of $3.44, suggesting a potential downside of 0.12%. Given Yamana Gold’s higher probable upside, research analysts plainly believe Yamana Gold is more favorable than Dorchester Minerals.

Valuation & Earnings

This table compares Yamana Gold and Dorchester Minerals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yamana Gold $1.79 billion 1.83 -$307.90 million ($0.37) -9.30
Dorchester Minerals $37.56 million 13.49 $20.23 million $0.96 16.35

Dorchester Minerals has lower revenue, but higher earnings than Yamana Gold. Yamana Gold is trading at a lower price-to-earnings ratio than Dorchester Minerals, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Yamana Gold has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares Yamana Gold and Dorchester Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yamana Gold -20.19% 0.71% 0.37%
Dorchester Minerals 64.05% 40.04% 39.40%

Institutional & Insider Ownership

40.6% of Yamana Gold shares are held by institutional investors. Comparatively, 13.4% of Dorchester Minerals shares are held by institutional investors. 2.7% of Yamana Gold shares are held by insiders. Comparatively, 9.2% of Dorchester Minerals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Dorchester Minerals pays an annual dividend of $1.14 per share and has a dividend yield of 7.3%. Yamana Gold pays out -5.4% of its earnings in the form of a dividend. Dorchester Minerals pays out 118.8% 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 beats Yamana Gold on 10 of the 15 factors compared between the two stocks.

Yamana Gold Company Profile

Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.

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.

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