Financial Contrast: Dorchester Minerals, L.P. (DMLP) vs. Rio Tinto PLC (RIO)
Dorchester Minerals, L.P. (NASDAQ: DMLP) and Rio Tinto PLC (NYSE:RIO) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Valuation and Earnings
This table compares Dorchester Minerals, L.P. and Rio Tinto PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dorchester Minerals, L.P.||$45.34 million||10.39||$38.15 million||$0.95||15.37|
|Rio Tinto PLC||$37.60 billion||2.33||$15.22 billion||N/A||N/A|
Rio Tinto PLC has higher revenue and earnings than Dorchester Minerals, L.P..
This is a breakdown of current recommendations for Dorchester Minerals, L.P. and Rio Tinto PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dorchester Minerals, L.P.||0||0||0||0||N/A|
|Rio Tinto PLC||1||3||14||0||2.72|
Rio Tinto PLC has a consensus target price of $47.67, indicating a potential downside of 2.40%. Given Rio Tinto PLC’s higher possible upside, analysts plainly believe Rio Tinto PLC is more favorable than Dorchester Minerals, L.P..
Dorchester Minerals, L.P. pays an annual dividend of $1.29 per share and has a dividend yield of 8.8%. Rio Tinto PLC pays an annual dividend of $2.36 per share and has a dividend yield of 4.8%. Dorchester Minerals, L.P. pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Dorchester Minerals, L.P. has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Rio Tinto PLC has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
This table compares Dorchester Minerals, L.P. and Rio Tinto PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dorchester Minerals, L.P.||65.28%||41.71%||41.15%|
|Rio Tinto PLC||N/A||N/A||N/A|
Insider & Institutional Ownership
13.3% of Dorchester Minerals, L.P. shares are held by institutional investors. Comparatively, 6.9% of Rio Tinto PLC shares are held by institutional investors. 9.2% of Dorchester Minerals, L.P. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dorchester Minerals, L.P. beats Rio Tinto PLC on 7 of the 13 factors compared between the two stocks.
Dorchester Minerals, L.P. 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.
Rio Tinto PLC Company Profile
Rio Tinto plc is a mining and metals company. The Company’s business is finding, mining and processing mineral resources. The Company’s segments include Iron Ore, Aluminium, Copper & Diamonds, Energy & Minerals and Other Operations. The Company operates an iron ore business, supplying the global seaborne iron ore trade. Its Iron Ore product operations are located in the Pilbara region of Western Australia. The Aluminium business includes bauxite mines, alumina refineries and aluminum smelters. Its bauxite mines are located in Australia, Brazil and Guinea. The Copper & Diamonds segment has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals segment consists of mining, refining and marketing operations in over 10 countries, across six sectors: borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium.
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