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.
Wheaton Precious Metals (NYSE:WPM) and Newmont (NYSE:NEM) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their media sentiment, valuation, dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and community ranking.
Wheaton Precious Metals has a net margin of 53.74% compared to Newmont's net margin of -20.19%. Wheaton Precious Metals' return on equity of 8.53% beat Newmont's return on equity.
Wheaton Precious Metals pays an annual dividend of $0.62 per share and has a dividend yield of 1.2%. Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Wheaton Precious Metals pays out 47.7% of its earnings in the form of a dividend. Newmont pays out -37.5% 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.
Wheaton Precious Metals currently has a consensus target price of $57.39, indicating a potential upside of 9.13%. Newmont has a consensus target price of $48.36, indicating a potential upside of 19.81%. Given Newmont's higher probable upside, analysts plainly believe Newmont is more favorable than Wheaton Precious Metals.
70.3% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 68.9% of Newmont 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.
In the previous week, Newmont had 5 more articles in the media than Wheaton Precious Metals. MarketBeat recorded 14 mentions for Newmont and 9 mentions for Wheaton Precious Metals. Wheaton Precious Metals' average media sentiment score of 1.65 beat Newmont's score of 1.09 indicating that Wheaton Precious Metals is being referred to more favorably in the media.
Wheaton Precious Metals has higher earnings, but lower revenue 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 beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
Newmont received 526 more outperform votes than Wheaton Precious Metals when rated by MarketBeat users. Likewise, 63.28% of users gave Newmont an outperform vote while only 61.61% of users gave Wheaton Precious Metals an outperform vote.
Summary
Wheaton Precious Metals beats Newmont 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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