A-Mark Precious Metals (NASDAQ: AMRK) and Rio Tinto plc (NYSE:RTP) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for A-Mark Precious Metals and Rio Tinto plc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A-Mark Precious Metals 0 1 1 1 3.00
Rio Tinto plc 0 0 0 0 N/A

A-Mark Precious Metals currently has a consensus price target of $21.65, suggesting a potential upside of 41.32%.

Institutional & Insider Ownership

19.9% of A-Mark Precious Metals shares are owned by institutional investors. 38.8% of A-Mark Precious Metals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. Rio Tinto plc does not pay a dividend. A-Mark Precious Metals pays out 32.3% of its earnings in the form of a dividend.

Profitability

This table compares A-Mark Precious Metals and Rio Tinto plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A-Mark Precious Metals 0.10% 9.95% 1.40%
Rio Tinto plc 17.01% 16.16% 7.28%

Earnings & Valuation

This table compares A-Mark Precious Metals and Rio Tinto plc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
A-Mark Precious Metals $6.99 billion 0.02 $10.39 million $0.99 15.47
Rio Tinto plc N/A N/A N/A N/A N/A

A-Mark Precious Metals has higher revenue and earnings than Rio Tinto plc.

Summary

A-Mark Precious Metals beats Rio Tinto plc on 6 of the 10 factors compared between the two stocks.

About A-Mark Precious Metals

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

About Rio Tinto plc

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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