Diamcor Mining (OTCMKTS:DMIFF) and A-Mark Precious Metals (NASDAQ:AMRK) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. Diamcor Mining does not pay a dividend. A-Mark Precious Metals pays out -266.7% of its earnings in the form of a dividend. A-Mark Precious Metals has raised its dividend for 2 consecutive years.

Volatility and Risk

Diamcor Mining has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, A-Mark Precious Metals has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500.

Earnings and Valuation

This table compares Diamcor Mining and A-Mark Precious Metals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diamcor Mining $4.52 million 2.40 N/A N/A N/A
A-Mark Precious Metals $7.61 billion 0.01 -$3.39 million ($0.06) -212.83

Diamcor Mining has higher earnings, but lower revenue than A-Mark Precious Metals.

Insider & Institutional Ownership

18.2% of A-Mark Precious Metals shares are held by institutional investors. 39.5% of A-Mark Precious Metals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Diamcor Mining and A-Mark Precious Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diamcor Mining N/A N/A N/A
A-Mark Precious Metals -0.03% 0.79% 0.08%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Diamcor Mining and A-Mark Precious Metals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamcor Mining 0 0 1 0 3.00
A-Mark Precious Metals 0 1 0 0 2.00

A-Mark Precious Metals has a consensus target price of $16.50, indicating a potential upside of 29.21%. Given A-Mark Precious Metals’ higher possible upside, analysts clearly believe A-Mark Precious Metals is more favorable than Diamcor Mining.

Summary

A-Mark Precious Metals beats Diamcor Mining on 9 of the 14 factors compared between the two stocks.

About Diamcor Mining

Diamcor Mining Inc., a junior mining and exploration company, identifies, acquires, explores for, evaluates, operates, and develops diamond based resource properties. It holds interests in the Krone-Endora at Venetia project that consists of Krone 104MS and Endora 66MS farms covering a combined surface area of approximately 5,888 hectares located in South Africa. The company is based in Kelowna, Canada.

About A-Mark Precious Metals

A-Mark Precious Metals, Inc., together with its subsidiaries, operates as a precious metals trading company worldwide. The company offers gold, silver, platinum, and palladium in the form of bars, plates, powder, wafers, grains, ingots, and coins, as well as distributes gold and silver coins and bars from sovereign and private mints. It also provides loans on precious metals, and rare coins and other collectibles collateral to coin dealers, collectors, and investors; storage solutions for precious metals and numismatic coins for financial institutions, dealers, investors, and collectors; and a range of logistics services, including storage, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins. In addition, the company offers custom fabricated silver bullion and other specialty products, as well as various services comprising consignment and customized finance programs. It serves mints, manufacturers and fabricators, refiners, coin and bullion dealers, e-commerce retailers, banks and other financial institutions, commodity brokerage houses, industrial users of precious metals, investors, and collectors. The company was founded in 1965 and is headquartered in El Segundo, California.

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