Dorchester Minerals, L.P. (NASDAQ: DMLP) and Teck Resources (NYSE:TECK) are both integrated mining companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Volatility & Risk
Dorchester Minerals, L.P. has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Teck Resources has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Dorchester Minerals, L.P. and Teck Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dorchester Minerals, L.P.||0||0||0||0||N/A|
Teck Resources has a consensus target price of $31.77, suggesting a potential upside of 47.57%. Given Teck Resources’ higher probable upside, analysts clearly believe Teck Resources is more favorable than Dorchester Minerals, L.P..
Dorchester Minerals, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 7.3%. Teck Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Dorchester Minerals, L.P. pays out 118.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teck Resources pays out 2.5% of its earnings in the form of a dividend.
Institutional & Insider Ownership
13.2% of Dorchester Minerals, L.P. shares are held by institutional investors. Comparatively, 45.8% of Teck Resources shares are held by institutional investors. 9.2% of Dorchester Minerals, L.P. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Dorchester Minerals, L.P. and Teck Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Dorchester Minerals, L.P.||$37.56 million||13.41||$20.23 million||$0.96||16.25|
|Teck Resources||$6.97 billion||1.76||$785.40 million||$3.16||6.81|
Teck Resources has higher revenue and earnings than Dorchester Minerals, L.P.. Teck 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.
This table compares Dorchester Minerals, L.P. and Teck Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dorchester Minerals, L.P.||64.05%||40.04%||39.40%|
Teck Resources beats Dorchester Minerals, L.P. on 8 of the 15 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 Teck Resources
Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy. Through its interests in mining and processing operations in Canada, the United States, Chile and Peru, the Company is a seaborne exporter of steelmaking coal, and producer of copper and mined zinc. It also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. In addition, the Company owns interest in the Fort Hills oil sands project and interests in other assets in the Athabasca region of Alberta. It is engaged in advancing porphyry copper projects in Canada, Chile, Peru, the United States and Turkey.
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