Kinross Gold (NYSE:KGC) versus DPM Metals (OTCMKTS:DPMLF) Financial Analysis

DPM Metals (OTCMKTS:DPMLF) and Kinross Gold (NYSE:KGC) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

63.7% of Kinross Gold shares are held by institutional investors. 0.3% of DPM Metals shares are held by insiders. Comparatively, 1.0% of Kinross Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares DPM Metals and Kinross Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DPM Metals	39.03%	22.84%	19.66%
Kinross Gold	27.30%	22.25%	14.75%

Analyst Ratings

This is a summary of recent ratings and recommmendations for DPM Metals and Kinross Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DPM Metals	0	1	3	4	3.38
Kinross Gold	0	3	9	4	3.06

Kinross Gold has a consensus target price of $29.81, suggesting a potential downside of 10.12%. Given Kinross Gold’s higher probable upside, analysts clearly believe Kinross Gold is more favorable than DPM Metals.

Earnings & Valuation

This table compares DPM Metals and Kinross Gold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$606.99 million	12.32	$235.88 million	$1.74	19.37
Kinross Gold	$5.15 billion	7.73	$948.80 million	$1.43	23.20

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

Dividends

DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Kinross Gold pays an annual dividend of $0.14 per share and has a dividend yield of 0.4%. DPM Metals pays out 9.2% of its earnings in the form of a dividend. Kinross Gold pays out 9.8% 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. DPM Metals is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

DPM Metals beats Kinross Gold on 8 of the 15 factors compared between the two stocks.

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.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.