Wheaton Precious Metals Corp. (WPM.TO) (TSE:WPM) and Pan American Silver (TSE:PAAS) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Wheaton Precious Metals Corp. (WPM.TO) and Pan American Silver, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Wheaton Precious Metals Corp. (WPM.TO) | 0 | 1 | 4 | 0 | 2.80 |
Pan American Silver | 0 | 2 | 2 | 0 | 2.50 |
Wheaton Precious Metals Corp. (WPM.TO) presently has a consensus price target of C$71.29, suggesting a potential upside of 57.85%. Pan American Silver has a consensus price target of C$41.40, suggesting a potential upside of 5.69%. Given Wheaton Precious Metals Corp. (WPM.TO)'s stronger consensus rating and higher probable upside, research analysts plainly believe Wheaton Precious Metals Corp. (WPM.TO) is more favorable than Pan American Silver.
Profitability
This table compares Wheaton Precious Metals Corp. (WPM.TO) and Pan American Silver's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Wheaton Precious Metals Corp. (WPM.TO) | N/A | N/A | N/A |
Pan American Silver | N/A | N/A | N/A |
Earnings and Valuation
This table compares Wheaton Precious Metals Corp. (WPM.TO) and Pan American Silver's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Wheaton Precious Metals Corp. (WPM.TO) | C$1.03 billion | 19.64 | C$426.82 million | C$0.95 | 47.54 |
Pan American Silver | C$1.34 billion | 6.15 | C$178.09 million | C$0.85 | 46.25 |
Wheaton Precious Metals Corp. (WPM.TO) has higher earnings, but lower revenue than Pan American Silver. Pan American Silver is trading at a lower price-to-earnings ratio than Wheaton Precious Metals Corp. (WPM.TO), indicating that it is currently the more affordable of the two stocks.
Dividends
Wheaton Precious Metals Corp. (WPM.TO) pays an annual dividend of C$0.39 per share and has a dividend yield of 0.9%. Pan American Silver pays an annual dividend of C$0.22 per share and has a dividend yield of 0.6%. Wheaton Precious Metals Corp. (WPM.TO) pays out 41.1% of its earnings in the form of a dividend. Pan American Silver pays out 26.0% 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.
Summary
Wheaton Precious Metals Corp. (WPM.TO) beats Pan American Silver on 8 of the 10 factors compared between the two stocks.