Head to Head Review: Deep Yellow (OTCMKTS:DYLLF) & Materion (NYSE:MTRN)

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

Analyst Recommendations

This is a summary of recent recommendations for Deep Yellow and Materion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deep Yellow	0	0	0	0	0.00
Materion	0	0	1	0	3.00

Materion has a consensus price target of $117.00, suggesting a potential downside of 0.17%. Given Materion’s stronger consensus rating and higher probable upside, analysts plainly believe Materion is more favorable than Deep Yellow.

Risk & Volatility

Deep Yellow has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Materion has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

93.6% of Materion shares are held by institutional investors. 2.6% of Materion shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Deep Yellow and Materion’s 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
Materion	0.94%	12.69%	6.48%

Earnings & Valuation

This table compares Deep Yellow and Materion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deep Yellow	$2.56 million	484.60	N/A	N/A	N/A
Materion	$1.73 billion	1.41	$5.89 million	$0.80	146.50

Materion has higher revenue and earnings than Deep Yellow.

Summary

Materion beats Deep Yellow on 10 of the 11 factors compared between the two stocks.

About Deep Yellow

Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile 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 involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.

About Materion

Materion Corporation, together with its subsidiaries, produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia, Europe, and internationally. The company operates in four segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The company provides advanced engineered solutions comprising beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes; engineering and product development services; alloyed metals, beryllium products, and beryllium hydroxide; precision strip, rod, and wire products, as well as engineered strip metal products; and ToughMet alloys and SupremEX aluminum silicon carbide metal matrix composite formulation products. It operates the bertrandite ore mine and refinery located in Utah that provides feedstock hydroxide for its beryllium businesses and external sale. In addition, it produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire. Further, the company designs and produces precision thin film coatings, optical filters, and assemblies. The company sells its products directly from its facilities, as well as through company-owned service centers, outside distributors, agents, direct sales offices, and independent sales representatives. The company was formerly known as Brush Engineered Materials Inc. and changed its name to Materion Corporation in March 2011. Materion Corporation was founded in 1921 and is headquartered in Mayfield Heights, Ohio.