Head to Head Review: Deep Yellow (OTCMKTS:DYLLF) & Employers (NYSE:EIG)

Deep Yellow (OTCMKTS:DYLLF) and Employers (NYSE:EIG) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Insider & Institutional Ownership

74.8% of Employers shares are owned by institutional investors. 2.9% of Employers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Deep Yellow and Employers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deep Yellow N/A N/A N/A
Employers 11.32% 5.85% 1.67%

Valuation and Earnings

This table compares Deep Yellow and Employers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Deep Yellow N/A N/A N/A N/A N/A
Employers $784.80 million 1.22 $157.10 million $3.20 10.28

Employers has higher revenue and earnings than Deep Yellow.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Deep Yellow and Employers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deep Yellow 0 0 0 0 N/A
Employers 0 1 1 0 2.50

Employers has a consensus target price of $50.00, indicating a potential upside of 52.02%. Given Employers’ higher possible upside, analysts clearly believe Employers is more favorable than Deep Yellow.

Summary

Employers beats Deep Yellow on 8 of the 8 factors compared between the two stocks.

Deep Yellow Company Profile

Deep Yellow Limited operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile Uranium project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is also involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.

Employers Company Profile

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Reno, Nevada.