Critical Contrast: DPM Metals (OTCMKTS:DPMLF) versus Salzgitter (OTCMKTS:SZGPY)
by Tristan Rich · The Markets DailyDPM Metals (OTCMKTS:DPMLF – Get Free Report) and Salzgitter (OTCMKTS:SZGPY – Get Free Report) are both mid-cap materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Earnings and Valuation
This table compares DPM Metals and Salzgitter”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DPM Metals | $950.48 million | 9.61 | $369.23 million | $3.04 | 13.70 |
| Salzgitter | $10.16 billion | 0.29 | -$83.95 million | $0.12 | 45.08 |
DPM Metals has higher earnings, but lower revenue than Salzgitter. DPM Metals is trading at a lower price-to-earnings ratio than Salzgitter, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DPM Metals and Salzgitter’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DPM Metals | 50.26% | 25.66% | 21.67% |
| Salzgitter | 0.65% | 1.29% | 0.54% |
Analyst Recommendations
This is a summary of current recommendations and price targets for DPM Metals and Salzgitter, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DPM Metals | 0 | 2 | 3 | 0 | 2.60 |
| Salzgitter | 0 | 2 | 5 | 0 | 2.71 |
Dividends
DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Salzgitter pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. DPM Metals pays out 5.3% of its earnings in the form of a dividend. Salzgitter pays out 8.3% 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.
Risk and Volatility
DPM Metals has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Salzgitter has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Summary
DPM Metals beats Salzgitter on 8 of the 13 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 Salzgitter
Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.