Comparing DPM Metals (OTCMKTS:DPMLF) & Largo (NYSE:LGO)

Largo (NYSE:LGO) and DPM Metals (OTCMKTS:DPMLF) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Valuation & Earnings

This table compares Largo and DPM Metals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Largo	$127.06 million	0.43	-$30.34 million	($1.07)	-0.44
DPM Metals	$950.48 million	8.85	$369.23 million	$3.04	12.62

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

Volatility and Risk

Largo has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, DPM Metals has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Largo and DPM Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Largo	0	0	2	0	3.00
DPM Metals	0	2	3	0	2.60

Largo presently has a consensus target price of $2.10, indicating a potential upside of 342.29%. Given Largo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Largo is more favorable than DPM Metals.

Insider & Institutional Ownership

64.1% of Largo shares are held by institutional investors. 0.3% of Largo shares are held by company insiders. Comparatively, 0.3% of DPM Metals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Largo	-35.10%	-22.61%	-14.29%
DPM Metals	50.26%	25.66%	21.67%

Summary

DPM Metals beats Largo on 10 of the 14 factors compared between the two stocks.

About Largo

Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and 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.