Rio Alto Mining (NYSE: RIOM) and A-Mark Precious Metals (NASDAQ:AMRK) are both integrated mining companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Valuation & Earnings
This table compares Rio Alto Mining and A-Mark Precious Metals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||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||0.01||$7.08 million||$0.79||18.11|
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||0.08%||7.75%||1.09%|
Institutional and Insider Ownership
19.7% 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 will outperform the market over the long term.
A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Rio Alto Mining does not pay a dividend. A-Mark Precious Metals pays out 40.5% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and recommmendations for Rio Alto Mining and A-Mark Precious Metals, as reported by MarketBeat.com.
|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 $20.90, suggesting a potential upside of 46.05%. Given A-Mark Precious Metals’ higher possible upside, analysts plainly believe A-Mark Precious Metals is more favorable than Rio Alto Mining.
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.
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