Financial Analysis: Dorchester Minerals, L.P. (DMLP) versus Rio Tinto plc (RTP)
Dorchester Minerals, L.P. (NASDAQ: DMLP) and Rio Tinto plc (NYSE:RTP) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
13.3% of Dorchester Minerals, L.P. shares are held by institutional investors. 9.2% of Dorchester Minerals, L.P. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Dorchester Minerals, L.P. and Rio Tinto plc’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dorchester Minerals, L.P.||65.28%||41.71%||41.15%|
|Rio Tinto plc||17.01%||16.16%||7.28%|
Dorchester Minerals, L.P. pays an annual dividend of $1.29 per share and has a dividend yield of 8.7%. Rio Tinto plc does not pay a dividend. Dorchester Minerals, L.P. pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current recommendations and price targets for Dorchester Minerals, L.P. and Rio Tinto plc, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dorchester Minerals, L.P.||0||0||0||0||N/A|
|Rio Tinto plc||0||0||0||0||N/A|
Earnings and Valuation
This table compares Dorchester Minerals, L.P. and Rio Tinto plc’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dorchester Minerals, L.P.||$45.34 million||10.50||$38.15 million||$0.95||15.53|
|Rio Tinto plc||N/A||N/A||N/A||N/A||N/A|
Dorchester Minerals, L.P. has higher revenue and earnings than Rio Tinto plc.
Dorchester Minerals, L.P. beats Rio Tinto plc on 7 of the 8 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 Rio Tinto plc
Rio Tinto plc is a mining and metals company. The Company’s business is finding, mining and processing mineral resources. The Company’s segments include Iron Ore, Aluminium, Copper & Diamonds, Energy & Minerals and Other Operations. The Company operates an iron ore business, supplying the global seaborne iron ore trade. Its Iron Ore product operations are located in the Pilbara region of Western Australia. The Aluminium business includes bauxite mines, alumina refineries and aluminum smelters. Its bauxite mines are located in Australia, Brazil and Guinea. The Copper & Diamonds segment has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals segment consists of mining, refining and marketing operations in over 10 countries, across six sectors: borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium.
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