DPM Metals (OTCMKTS:DPMLF) and Harmony Gold Mining (NYSE:HMY) Financial Comparison

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

Earnings & Valuation

This table compares DPM Metals and Harmony Gold Mining”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$606.99 million	6.63	$235.88 million	$1.40	17.21
Harmony Gold Mining	$4.07 billion	3.11	$792.56 million	$1.69	11.75

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

Dividends

DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Harmony Gold Mining pays an annual dividend of $0.14 per share and has a dividend yield of 0.7%. DPM Metals pays out 11.4% of its earnings in the form of a dividend. Harmony Gold Mining pays out 8.3% 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. Harmony Gold Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

31.8% of Harmony Gold Mining shares are held by institutional investors. 0.3% of DPM Metals shares are held by insiders. Comparatively, 16.0% of Harmony Gold Mining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares DPM Metals and Harmony Gold 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%
Harmony Gold Mining	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for DPM Metals and Harmony Gold 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
Harmony Gold Mining	1	4	2	1	2.38

Harmony Gold Mining has a consensus target price of $12.20, suggesting a potential downside of 38.56%. Given Harmony Gold Mining’s higher possible upside, analysts plainly believe Harmony Gold Mining is more favorable than DPM Metals.

Risk & Volatility

DPM Metals has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Harmony Gold Mining has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Summary

Harmony Gold 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 Harmony Gold Mining

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company explores for uranium, silver, copper, and molybdenum deposits. It has eight underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface source operations in South Africa. In addition, the company owns interests in the Hidden Valley, an open-pit gold and silver mine; and the Wafi-Golpu project located in Morobe Province in Papua New Guinea. Further, it holds interest in Rosby and Eva Copper Project located in Queensland, Australia. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.