DPM Metals (OTCMKTS:DPMLF – Get Free Report) and FAT Brands (NASDAQ:FATBB – Get Free Report) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Risk & Volatility
DPM Metals has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, FAT Brands has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.
Dividends
DPM Metals pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. FAT Brands pays an annual dividend of $0.14 per share and has a dividend yield of 15.8%. DPM Metals pays out 5.3% of its earnings in the form of a dividend. FAT Brands pays out -1.0% 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. FAT Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DPM Metals | 0 | 2 | 3 | 0 | 2.60 |
| FAT Brands | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares DPM Metals and FAT Brands”s top-line 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 | 10.35 | $369.23 million | $3.04 | 14.76 |
| FAT Brands | $574.14 million | 0.03 | -$189.85 million | ($13.35) | -0.07 |
DPM Metals has higher revenue and earnings than FAT Brands. FAT Brands 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 DPM Metals and FAT Brands’ 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% |
| FAT Brands | -39.33% | N/A | -17.57% |
Summary
DPM Metals beats FAT Brands on 10 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 FAT Brands
FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.
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