Analyzing Dundee Precious Metals (OTCMKTS:DPMLF) and Secom (OTCMKTS:SOMLY)

Profitability

This table compares Secom and Dundee Precious Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Secom	8.59%	7.25%	4.88%
Dundee Precious Metals	35.59%	16.96%	14.59%

Volatility and Risk

Secom has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Dundee Precious Metals has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Dividends

Secom pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Dundee Precious Metals pays an annual dividend of $0.16 per share and has a dividend yield of 1.8%. Secom pays out 22.5% of its earnings in the form of a dividend. Dundee Precious Metals pays out 14.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dundee Precious Metals is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Secom and Dundee Precious Metals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Secom	$8.00 billion	1.96	$703.46 million	$0.40	21.05
Dundee Precious Metals	$520.10 million	3.09	$192.94 million	$1.11	8.12

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

Summary

Dundee Precious Metals beats Secom on 8 of the 11 factors compared between the two stocks.

About Secom

SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.

About Dundee Precious 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.