WPM vs. FNV, ABX, AEM, K, TNX, PAAS, NGT, TECK.B, NTR, and IVN
Should you be buying Wheaton Precious Metals stock or one of its competitors? The main competitors of Wheaton Precious Metals include Franco-Nevada (FNV), Barrick Gold (ABX), Agnico Eagle Mines (AEM), Kinross Gold (K), TRX Gold (TNX), Pan American Silver (PAAS), Newmont (NGT), Teck Resources (TECK.B), Nutrien (NTR), and Ivanhoe Mines (IVN). These companies are all part of the "basic materials" sector.
Wheaton Precious Metals (TSE:WPM) and Franco-Nevada (TSE:FNV) are both large-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, media sentiment, dividends, community ranking, analyst recommendations, valuation, risk and profitability.
Wheaton Precious Metals presently has a consensus target price of C$84.33, suggesting a potential upside of 10.86%. Franco-Nevada has a consensus target price of C$191.50, suggesting a potential upside of 11.80%. Given Franco-Nevada's higher probable upside, analysts plainly believe Franco-Nevada is more favorable than Wheaton Precious Metals.
Wheaton Precious Metals has higher earnings, but lower revenue than Franco-Nevada. Franco-Nevada 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.
In the previous week, Wheaton Precious Metals had 13 more articles in the media than Franco-Nevada. MarketBeat recorded 17 mentions for Wheaton Precious Metals and 4 mentions for Franco-Nevada. Franco-Nevada's average media sentiment score of 1.12 beat Wheaton Precious Metals' score of 0.87 indicating that Franco-Nevada is being referred to more favorably in the news media.
Wheaton Precious Metals has a net margin of 52.92% compared to Franco-Nevada's net margin of -39.96%. Wheaton Precious Metals' return on equity of 7.85% beat Franco-Nevada's return on equity.
Franco-Nevada received 304 more outperform votes than Wheaton Precious Metals when rated by MarketBeat users. Likewise, 47.74% of users gave Franco-Nevada an outperform vote while only 33.33% of users gave Wheaton Precious Metals an outperform vote.
Wheaton Precious Metals pays an annual dividend of C$0.85 per share and has a dividend yield of 1.1%. Franco-Nevada pays an annual dividend of C$1.98 per share and has a dividend yield of 1.2%. Wheaton Precious Metals pays out 52.1% of its earnings in the form of a dividend. Franco-Nevada pays out -57.6% 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. Franco-Nevada is clearly the better dividend stock, given its higher yield and lower payout ratio.
Wheaton Precious Metals has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.
70.5% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 83.7% of Franco-Nevada shares are held by institutional investors. 0.3% of Wheaton Precious Metals shares are held by company insiders. Comparatively, 0.7% of Franco-Nevada shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Wheaton Precious Metals and Franco-Nevada tied by winning 10 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.
This chart shows the average media sentiment of TSE 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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