Dorchester Minerals, L.P. (NASDAQ: DMLP) and Pretium Resources (NYSE:PVG) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Dorchester Minerals, L.P. and Pretium Resources’ 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%
Pretium Resources N/A -2.05% -1.14%

Dividends

Dorchester Minerals, L.P. pays an annual dividend of $1.29 per share and has a dividend yield of 8.7%. Pretium Resources does not pay a dividend. 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.

Insider & Institutional Ownership

13.3% of Dorchester Minerals, L.P. shares are held by institutional investors. Comparatively, 43.3% of Pretium Resources 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 company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Dorchester Minerals, L.P. and Pretium Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorchester Minerals, L.P. 0 0 0 0 N/A
Pretium Resources 0 1 5 0 2.83

Pretium Resources has a consensus target price of $15.58, indicating a potential upside of 75.09%. Given Pretium Resources’ higher probable upside, analysts plainly believe Pretium Resources is more favorable than Dorchester Minerals, L.P..

Volatility & Risk

Dorchester Minerals, L.P. has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Pretium Resources has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dorchester Minerals, L.P. and Pretium Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dorchester Minerals, L.P. $45.34 million 10.50 $38.15 million $0.95 15.53
Pretium Resources N/A N/A -$16.23 million ($0.16) -55.63

Dorchester Minerals, L.P. has higher revenue and earnings than Pretium Resources. Pretium Resources is trading at a lower price-to-earnings ratio than Dorchester Minerals, L.P., indicating that it is currently the more affordable of the two stocks.

Summary

Dorchester Minerals, L.P. beats Pretium Resources on 9 of the 13 factors compared between the two stocks.

About Dorchester Minerals, L.P.

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.

About Pretium Resources

Pretium Resources Inc. is a Canada-based exploration and development company. The Company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas. The Company’s projects include Brucejack Project and the Snowfield Project, both of which are located in northwestern British Columbia. The Company’s focus is on advancing the Brucejack Project to production as a high-grade gold underground mine. The Brucejack Project is the Company’s material mineral project, which is located approximately 950 kilometers northwest of Vancouver, British Columbia, and over 65 kilometers north-northwest of Stewart, British Columbia. The Brucejack Project consists of approximately four mining leases and over six mineral claims totaling approximately 3,050 hectares in area. The Snowfield Project borders the Brucejack Project to the north and consists of over one mineral claim with an area of approximately 1,267.43 hectares.

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