Teck Resources (NYSE: TECK) and Dorchester Minerals, L.P. (NASDAQ:DMLP) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Institutional and Insider Ownership
46.2% of Teck Resources shares are owned by institutional investors. Comparatively, 13.3% of Dorchester Minerals, L.P. shares are owned by institutional investors. 9.2% of Dorchester Minerals, L.P. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Teck Resources and Dorchester Minerals, L.P.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$6.97 billion||1.81||$785.40 million||$3.16||6.99|
|Dorchester Minerals, L.P.||$37.56 million||12.89||$20.23 million||$0.96||15.63|
Teck Resources has higher revenue and earnings than Dorchester Minerals, L.P.. Teck Resources is trading at a lower price-to-earnings ratio than Dorchester Minerals, L.P., indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Teck Resources and Dorchester Minerals, L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dorchester Minerals, L.P.||0||0||0||0||N/A|
Teck Resources currently has a consensus price target of $31.39, indicating a potential upside of 42.10%. Given Teck Resources’ higher probable upside, equities analysts clearly believe Teck Resources is more favorable than Dorchester Minerals, L.P..
Volatility & Risk
Teck Resources has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Dorchester Minerals, L.P. has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
This table compares Teck Resources and Dorchester Minerals, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dorchester Minerals, L.P.||64.05%||40.04%||39.40%|
Teck Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Dorchester Minerals, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 7.6%. Teck Resources pays out 2.5% of its earnings in the form of a dividend. Dorchester Minerals, L.P. pays out 118.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Teck Resources beats Dorchester Minerals, L.P. on 8 of the 15 factors compared between the two stocks.
About Teck Resources
Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy. Through its interests in mining and processing operations in Canada, the United States, Chile and Peru, the Company is a seaborne exporter of steelmaking coal, and producer of copper and mined zinc. It also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. In addition, the Company owns interest in the Fort Hills oil sands project and interests in other assets in the Athabasca region of Alberta. It is engaged in advancing porphyry copper projects in Canada, Chile, Peru, the United States and Turkey.
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.
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