Lundin Gold (LUG) Competitors

Wheaton Precious Metals (TSE:WPM) and Lundin Gold (TSE:LUG) are both large-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, media sentiment, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Is WPM or LUG a better dividend stock?

Wheaton Precious Metals pays an annual dividend of C$0.84 per share and has a dividend yield of 0.7%. Lundin Gold pays an annual dividend of C$1.07 per share and has a dividend yield of 1.5%. Wheaton Precious Metals pays out 43.7% of its earnings in the form of a dividend. Lundin Gold pays out 60.1% 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.

Which has preferable earnings & valuation, WPM or LUG?

Wheaton Precious Metals has higher revenue and earnings than Lundin Gold. Lundin Gold 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wheaton Precious Metals	C$851.18M	45.25	C$426.03M	C$1.92	63.19
Lundin Gold	C$730.61M	16.82	C$215.94M	C$1.78	40.40

Do institutionals and insiders believe in WPM or LUG?

69.4% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 27.8% of Lundin Gold shares are held by institutional investors. 0.1% of Wheaton Precious Metals shares are held by insiders. Comparatively, 58.7% of Lundin Gold shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Does the media refer more to WPM or LUG?

In the previous week, Lundin Gold had 3 more articles in the media than Wheaton Precious Metals. MarketBeat recorded 12 mentions for Lundin Gold and 9 mentions for Wheaton Precious Metals. Wheaton Precious Metals' average media sentiment score of 1.12 beat Lundin Gold's score of 0.24 indicating that Wheaton Precious Metals is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Wheaton Precious Metals	4 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Lundin Gold	2 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts rate WPM or LUG?

Wheaton Precious Metals currently has a consensus target price of C$109.50, suggesting a potential downside of 9.83%. Lundin Gold has a consensus target price of C$50.91, suggesting a potential downside of 29.27%. Given Wheaton Precious Metals' stronger consensus rating and higher possible upside, equities analysts plainly believe Wheaton Precious Metals is more favorable than Lundin Gold.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wheaton Precious Metals	0 Sell rating(s)	0 Hold rating(s)	5 Buy rating(s)	4 Strong Buy rating(s)	3.44
Lundin Gold	1 Sell rating(s)	10 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.08

Is WPM or LUG more profitable?

Wheaton Precious Metals has a net margin of 50.05% compared to Lundin Gold's net margin of 29.56%. Lundin Gold's return on equity of 29.88% beat Wheaton Precious Metals' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Wheaton Precious Metals	50.05%	8.56%	5.35%
Lundin Gold	29.56%	29.88%	17.59%

Which has more risk & volatility, WPM or LUG?

Wheaton Precious Metals has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Lundin Gold has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Summary

Wheaton Precious Metals beats Lundin Gold on 13 of the 19 factors compared between the two stocks.