Critical Analysis: Rio Alto Mining (RIOM) & A-Mark Precious Metals (AMRK)

Rio Alto Mining (NASDAQ: RIOM) and A-Mark Precious Metals (NASDAQ:AMRK) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Rio Alto Mining and A-Mark Precious Metals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Alto Mining 0 0 0 0 N/A
A-Mark Precious Metals 0 1 1 1 3.00

A-Mark Precious Metals has a consensus price target of $21.65, suggesting a potential upside of 37.64%. Given A-Mark Precious Metals’ higher probable upside, analysts plainly believe A-Mark Precious Metals is more favorable than Rio Alto Mining.

Valuation and Earnings

This table compares Rio Alto Mining and A-Mark Precious Metals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rio Alto Mining N/A N/A N/A N/A N/A
A-Mark Precious Metals $6.99 billion 0.02 $10.39 million $0.99 15.89

A-Mark Precious Metals has higher revenue and earnings than Rio Alto Mining.

Profitability

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

Net Margins Return on Equity Return on Assets
Rio Alto Mining N/A N/A N/A
A-Mark Precious Metals 0.10% 9.95% 1.40%

Institutional & Insider Ownership

19.9% of A-Mark Precious Metals shares are held by institutional investors. 38.8% of A-Mark Precious Metals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Rio Alto Mining does not pay a dividend. A-Mark Precious Metals pays out 32.3% of its earnings in the form of a dividend.

Summary

A-Mark Precious Metals beats Rio Alto Mining on 10 of the 11 factors compared between the two stocks.

Rio Alto Mining Company Profile

Rio Alto Mining Limited is a Canada-based resource exploration company. The Company is engaged in the business of acquiring, exploring, developing and operating mineral resource properties in Peru. The Company is also engaged in the business of acquiring, exploring, and developing gold resources and advanced stage exploration projects in Peru and Latin America. The Company owns and operates the La Arena Mine and the Shahuindo Gold Projects in northern Peru. The Company is focused on the development of the 21,000 hectares La Arena gold / copper project, located in north central Peru. The La Arena Project consists of 20,673 hectares in 44 concessions located 480 kilometers north-northwest of Lima, the capital of Peru, and approximately 18 kilometers from Huamachuco.

A-Mark Precious Metals Company Profile

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

What are top analysts saying about Rio Alto Mining Ltd? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Rio Alto Mining Ltd and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit