Gold Resource (NASDAQ: GORO) and Dorchester Minerals, L.P. (NASDAQ:DMLP) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Dividends

Dorchester Minerals, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 7.7%. Gold Resource does not pay a dividend. Dorchester Minerals, L.P. pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and price targets for Gold Resource and Dorchester Minerals, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gold Resource 0 0 0 0 N/A
Dorchester Minerals, L.P. 0 0 0 0 N/A

Profitability

This table compares Gold Resource and Dorchester Minerals, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gold Resource 14.72% 15.94% 13.82%
Dorchester Minerals, L.P. 65.28% 41.71% 41.15%

Insider & Institutional Ownership

13.4% of Dorchester Minerals, L.P. 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Gold Resource and Dorchester Minerals, L.P.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gold Resource N/A N/A N/A N/A N/A
Dorchester Minerals, L.P. $37.56 million 12.72 $20.23 million $0.95 15.58

Dorchester Minerals, L.P. has higher revenue and earnings than Gold Resource.

Summary

Dorchester Minerals, L.P. beats Gold Resource on 7 of the 8 factors compared between the two stocks.

Gold Resource Company Profile

Gold Resource Corporation is a mining company. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and dore containing gold and silver at the Aguila Project within its Oaxaca Mining Unit located in the southern state of Oaxaca, Mexico. The Company has two units in North America, the Oaxaca Mining Unit and the Nevada Mining Unit. The Company’s mineral properties are classified into two categories, such as Operating Properties and Exploration Properties. As of December 31, 2016, the Company had interest in nine properties, where over six of its properties, including one Operating Property and five Exploration Properties, are within its Oaxaca Mining Unit, which is located in the southern state of Oaxaca, Mexico. As of December 31, 2016, the Company also had three Exploration Properties within its Nevada Mining Unit located in south central Nevada’s Walker Lane Mineral Belt in the United States.

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.

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