Reviewing OR Royalties (NYSE:OR) & DPM Metals (OTCMKTS:DPMLF)

OR Royalties (NYSE:OR) and DPM Metals (OTCMKTS:DPMLF) are both mid-cap materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Volatility & Risk

OR Royalties has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, DPM Metals has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

68.5% of OR Royalties shares are held by institutional investors. 0.3% of DPM Metals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares OR Royalties and DPM Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OR Royalties	78.04%	16.41%	14.51%
DPM Metals	50.26%	25.66%	21.67%

Earnings and Valuation

This table compares OR Royalties and DPM Metals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OR Royalties	$277.37 million	23.16	$206.09 million	$1.50	22.98
DPM Metals	$950.48 million	8.94	$369.23 million	$3.04	12.74

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

Dividends

OR Royalties pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. OR Royalties pays out 17.3% of its earnings in the form of a dividend. DPM Metals pays out 5.3% 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. OR Royalties has increased its dividend for 1 consecutive years. OR Royalties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations for OR Royalties and DPM Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OR Royalties	0	5	3	1	2.56
DPM Metals	0	2	3	0	2.60

OR Royalties currently has a consensus price target of $41.00, indicating a potential upside of 18.93%. Given OR Royalties’ higher possible upside, research analysts clearly believe OR Royalties is more favorable than DPM Metals.

Summary

OR Royalties beats DPM Metals on 9 of the 17 factors compared between the two stocks.

About OR Royalties

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.

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.