Deep Yellow (OTCMKTS:DYLLF) versus Perpetua Resources (NASDAQ:PPTA) Critical Survey

Deep Yellow (OTCMKTS:DYLLF) and Perpetua Resources (NASDAQ:PPTA) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Deep Yellow and Perpetua Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deep Yellow	$7.51 million	155.46	$4.64 million	N/A	N/A
Perpetua Resources	N/A	N/A	-$14.48 million	($1.05)	-27.97

Deep Yellow has higher revenue and earnings than Perpetua Resources.

Insider and Institutional Ownership

70.1% of Perpetua Resources shares are owned by institutional investors. 1.5% of Perpetua Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Deep Yellow and Perpetua Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deep Yellow	0	1	0	0	2.00
Perpetua Resources	1	0	6	1	2.88

Deep Yellow currently has a consensus price target of $1.85, suggesting a potential upside of 54.17%. Perpetua Resources has a consensus price target of $35.00, suggesting a potential upside of 19.17%. Given Deep Yellow’s higher probable upside, analysts clearly believe Deep Yellow is more favorable than Perpetua Resources.

Volatility and Risk

Deep Yellow has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Perpetua Resources has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Profitability

This table compares Deep Yellow and Perpetua Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deep Yellow	N/A	N/A	N/A
Perpetua Resources	N/A	-14.14%	-13.71%

Summary

Deep Yellow beats Perpetua Resources on 6 of the 11 factors compared between the two stocks.

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.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.