WPM vs. NEM, AEM, GOLD, FNV, GFI, AU, KGC, PAAS, AGI, and HMY
Should you be buying Wheaton Precious Metals stock or one of its competitors? The main competitors of Wheaton Precious Metals include Newmont (NEM), Agnico Eagle Mines (AEM), Barrick Gold (GOLD), Franco-Nevada (FNV), Gold Fields (GFI), AngloGold Ashanti (AU), Kinross Gold (KGC), Pan American Silver (PAAS), Alamos Gold (AGI), and Harmony Gold Mining (HMY). These companies are all part of the "gold & silver ores" industry.
Newmont (NYSE:NEM) and Wheaton Precious Metals (NYSE:WPM) are both large-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their community ranking, risk, analyst recommendations, earnings, valuation, institutional ownership, dividends, media sentiment and profitability.
68.9% of Newmont shares are held by institutional investors. Comparatively, 70.3% of Wheaton Precious Metals shares are held by institutional investors. 0.1% of Newmont shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Wheaton Precious Metals has lower revenue, but higher earnings than Newmont. Newmont is trading at a lower price-to-earnings ratio than Wheaton Precious Metals, indicating that it is currently the more affordable of the two stocks.
Wheaton Precious Metals has a net margin of 53.74% compared to Wheaton Precious Metals' net margin of -13.16%. Wheaton Precious Metals' return on equity of 8.65% beat Newmont's return on equity.
Newmont has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Wheaton Precious Metals pays an annual dividend of $0.62 per share and has a dividend yield of 1.1%. Newmont pays out -37.5% of its earnings in the form of a dividend. Wheaton Precious Metals pays out 47.7% 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. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.
Newmont received 530 more outperform votes than Wheaton Precious Metals when rated by MarketBeat users. Likewise, 63.41% of users gave Newmont an outperform vote while only 61.70% of users gave Wheaton Precious Metals an outperform vote.
In the previous week, Newmont had 14 more articles in the media than Wheaton Precious Metals. MarketBeat recorded 26 mentions for Newmont and 12 mentions for Wheaton Precious Metals. Newmont's average media sentiment score of 1.35 beat Wheaton Precious Metals' score of 0.83 indicating that Wheaton Precious Metals is being referred to more favorably in the news media.
Newmont currently has a consensus price target of $50.00, indicating a potential upside of 7.00%. Wheaton Precious Metals has a consensus price target of $61.06, indicating a potential upside of 4.73%. Given Wheaton Precious Metals' higher possible upside, equities research analysts plainly believe Newmont is more favorable than Wheaton Precious Metals.
Summary
Newmont beats Wheaton Precious Metals on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WPM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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