DPM Metals (OTCMKTS:DPMLF) vs. Nucor (NYSE:NUE) Head to Head Comparison

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

Institutional & Insider Ownership

76.5% of Nucor shares are owned by institutional investors. 0.3% of DPM Metals shares are owned by company insiders. Comparatively, 0.6% of Nucor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

DPM Metals has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Nucor has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.

Earnings & Valuation

This table compares DPM Metals and Nucor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$950.48 million	9.60	$369.23 million	$3.04	13.69
Nucor	$36.10 billion	1.57	$1.74 billion	$12.54	19.96

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DPM Metals	50.26%	25.66%	21.67%
Nucor	7.99%	12.73%	8.03%

Analyst Ratings

This is a summary of recent ratings for DPM Metals and Nucor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DPM Metals	0	2	3	0	2.60
Nucor	0	4	13	0	2.76

Nucor has a consensus price target of $276.07, indicating a potential upside of 10.32%. Given Nucor’s stronger consensus rating and higher possible upside, analysts clearly believe Nucor is more favorable than DPM Metals.

Dividends

DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Nucor pays an annual dividend of $2.24 per share and has a dividend yield of 0.9%. DPM Metals pays out 5.3% of its earnings in the form of a dividend. Nucor pays out 17.9% 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. Nucor has increased its dividend for 52 consecutive years. Nucor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Nucor beats DPM Metals on 12 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 Nucor

Nucor Corporation engages in manufacture and sale of steel and steel products. It operates in three segments: steel mills, steel products, and raw materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and engineered special bar quality products; and engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico. The Steel Products segment offers steel joists and joist girders, steel decks, and galvanized torque tubes for used in solar arrays, hollow structural section steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems, insulated metal panels, steel racking, overhead doors, and utility towers and structures for communications and energy transmission. This segment is also involved in the piling distribution business. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; processes ferrous and nonferrous scrap metal; and engages in the natural gas production and industrial gas business. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals. It markets its products through in-house sales force; and internal distribution and trading companies. Nucor Corporation was founded in 1905 and is headquartered in Charlotte, North Carolina.