Analyzing DPM Metals (OTCMKTS:DPMLF) and Jaguar Mining (OTCMKTS:JAGGF)

Jaguar Mining (OTCMKTS:JAGGF) 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 analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Jaguar Mining and DPM Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
DPM Metals	0	1	3	3	3.29

Valuation & Earnings

This table compares Jaguar Mining and DPM Metals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$158.63 million	2.37	-$1.29 million	($0.19)	-23.32
DPM Metals	$606.99 million	6.19	$235.88 million	$1.40	16.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	-17.87%	1.41%	1.00%
DPM Metals	37.07%	21.68%	18.91%

Volatility & Risk

Jaguar Mining has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, DPM Metals has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Dividends

Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Jaguar Mining pays out -15.8% of its earnings in the form of a dividend. DPM Metals pays out 11.4% 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 Jaguar Mining on 12 of the 14 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. 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.