Sibanye Stillwater (NYSE:SBSW) and Pan American Silver (NASDAQ:PAAS) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
Profitability
This table compares Sibanye Stillwater and Pan American Silver's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sibanye Stillwater | N/A | N/A | N/A |
| Pan American Silver | 4.51% | 7.91% | 5.71% |
Analyst Recommendations
This is a summary of recent ratings for Sibanye Stillwater and Pan American Silver, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sibanye Stillwater | 0 | 0 | 4 | 0 | 3.00 |
| Pan American Silver | 0 | 4 | 4 | 0 | 2.50 |
Sibanye Stillwater presently has a consensus price target of $17.3750, indicating a potential upside of 11.74%. Pan American Silver has a consensus price target of $30.4583, indicating a potential upside of 2.38%. Given Sibanye Stillwater's stronger consensus rating and higher possible upside, research analysts plainly believe Sibanye Stillwater is more favorable than Pan American Silver.
Volatility and Risk
Sibanye Stillwater has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Dividends
Sibanye Stillwater pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Pan American Silver pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Sibanye Stillwater pays out 1,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pan American Silver pays out 35.9% of its earnings in the form of a dividend. Pan American Silver is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
10.7% of Sibanye Stillwater shares are owned by institutional investors. Comparatively, 48.1% of Pan American Silver shares are owned by institutional investors. 0.1% of Sibanye Stillwater shares are owned by company insiders. Comparatively, 12.9% of Pan American Silver shares are owned by company 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.
Earnings & Valuation
This table compares Sibanye Stillwater and Pan American Silver's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sibanye Stillwater | $5.04 billion | 2.25 | $4.30 million | $0.01 | 1,555.00 |
| Pan American Silver | $1.35 billion | 4.63 | $110.74 million | $0.78 | 38.14 |
Pan American Silver has lower revenue, but higher earnings than Sibanye Stillwater. Pan American Silver is trading at a lower price-to-earnings ratio than Sibanye Stillwater, indicating that it is currently the more affordable of the two stocks.
Summary
Pan American Silver beats Sibanye Stillwater on 10 of the 15 factors compared between the two stocks.
