Reviewing Iamgold (NYSE:IAG) & DPM Metals (OTCMKTS:DPMLF)

Iamgold (NYSE:IAG) and DPM Metals (OTCMKTS:DPMLF) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares Iamgold and DPM Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iamgold	40.61%	8.54%	5.37%
DPM Metals	39.03%	28.09%	24.85%

Earnings & Valuation

This table compares Iamgold and DPM Metals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iamgold	$2.23 billion	3.86	$819.60 million	$0.60	24.96
DPM Metals	$606.99 million	7.63	$235.88 million	$1.74	15.95

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Iamgold and DPM Metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iamgold	0	3	5	2	2.90
DPM Metals	0	1	3	4	3.38

Iamgold currently has a consensus target price of $15.25, suggesting a potential upside of 1.82%. Given Iamgold’s higher probable upside, equities analysts clearly believe Iamgold is more favorable than DPM Metals.

Institutional and Insider Ownership

47.1% of Iamgold shares are held by institutional investors. 0.2% of Iamgold shares are held by insiders. Comparatively, 0.3% of DPM Metals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Iamgold pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Iamgold pays out 41.7% of its earnings in the form of a dividend. DPM Metals pays out 9.2% 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.

Summary

DPM Metals beats Iamgold on 9 of the 16 factors compared between the two stocks.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

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.