James River Group (NASDAQ:JRVR) versus Deep Yellow (OTCMKTS:DYLLF) Critical Review

Deep Yellow (OTCMKTS:DYLLF) and James River Group (NASDAQ:JRVR) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Valuation and Earnings

This table compares Deep Yellow and James River Group”s 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
James River Group	$817.84 million	0.29	-$107.68 million	($2.09)	-2.96

Deep Yellow has higher earnings, but lower revenue than James River Group.

Volatility & Risk

Deep Yellow has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, James River Group has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.

Insider & Institutional Ownership

95.2% of James River Group shares are owned by institutional investors. 15.2% of James River Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Deep Yellow and James River Group’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
James River Group	-12.79%	11.66%	1.24%

Analyst Ratings

This is a breakdown of current ratings and price targets for Deep Yellow and James River Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deep Yellow	0	0	0	0	N/A
James River Group	1	2	3	0	2.33

James River Group has a consensus target price of $11.17, indicating a potential upside of 80.40%. Given James River Group’s higher possible upside, analysts clearly believe James River Group is more favorable than Deep Yellow.

Summary

James River Group beats Deep Yellow on 7 of the 9 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 James River Group

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance services. It operates through Excess and Surplus Lines, and Specialty Admitted Insurance segments. The Excess and Surplus Lines segment underwrites liability and property insurance in the United States Puerto Rice, and the United States Virgin Islands. This segment distributes its insurance policies primarily through wholesale insurance brokers. The Specialty Admitted Insurance segment provides insurance for fronting, program administrators, managing general agents, and independent retail agents. James River Group Holdings, Ltd. was founded in 2002 and is headquartered in Pembroke, Bermuda.