Wheaton Precious Metals (NYSE: AUY) and Yamana Gold (NYSE:AUY) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Risk and Volatility
Wheaton Precious Metals has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Yamana Gold has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
This table compares Wheaton Precious Metals and Yamana Gold’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wheaton Precious Metals||7.65%||5.75%||4.93%|
Wheaton Precious Metals pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. Yamana Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Wheaton Precious Metals pays out 57.1% of its earnings in the form of a dividend. Yamana Gold pays out 25.0% 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.
Earnings & Valuation
This table compares Wheaton Precious Metals and Yamana Gold’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wheaton Precious Metals||$843.22 million||9.63||$57.70 million||$0.63||29.06|
|Yamana Gold||$1.80 billion||1.43||-$194.40 million||$0.08||33.88|
Wheaton Precious Metals has higher earnings, but lower revenue than Yamana Gold. Wheaton Precious Metals is trading at a lower price-to-earnings ratio than Yamana Gold, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
53.1% of Wheaton Precious Metals shares are owned by institutional investors. Comparatively, 43.3% of Yamana Gold shares are owned by institutional investors. 2.7% of Yamana Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Wheaton Precious Metals and Yamana Gold, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wheaton Precious Metals||0||0||5||0||3.00|
Wheaton Precious Metals presently has a consensus price target of $27.50, suggesting a potential upside of 50.19%. Yamana Gold has a consensus price target of $4.00, suggesting a potential upside of 47.60%. Given Wheaton Precious Metals’ stronger consensus rating and higher probable upside, research analysts clearly believe Wheaton Precious Metals is more favorable than Yamana Gold.
Wheaton Precious Metals beats Yamana Gold on 10 of the 16 factors compared between the two stocks.
About Wheaton Precious Metals
Wheaton Precious Metals Corp. operates as a silver and gold streaming company in Canada and internationally. It has streaming agreements for 20 operating mines and 9 development stage projects. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.
About Yamana Gold
Yamana Gold Inc. operates as a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina. It primarily sells precious metals, including gold, silver, and copper. The company was formerly known as Yamana Resources Inc. and changed its name to Yamana Gold Inc. in July 2003. Yamana Gold Inc. was founded in 1980 and is based in Toronto, Canada.
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