Comparing Wheaton Precious Metals (WPM) and Its Competitors

Wheaton Precious Metals (NYSE: WPM) is one of 41 publicly-traded companies in the “Gold & silver ores” industry, but how does it compare to its competitors? We will compare Wheaton Precious Metals to similar businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, dividends and risk.

Dividends

Wheaton Precious Metals pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Wheaton Precious Metals pays out 57.1% of its earnings in the form of a dividend. As a group, “Gold & silver ores” companies pay a dividend yield of 1.4% and pay out 47.8% of their earnings in the form of a dividend.



Analyst Recommendations

This is a breakdown of current ratings and target prices for Wheaton Precious Metals and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheaton Precious Metals 0 1 7 0 2.88
Wheaton Precious Metals Competitors 420 1735 1622 67 2.35

Wheaton Precious Metals currently has a consensus price target of $26.29, suggesting a potential upside of 24.75%. As a group, “Gold & silver ores” companies have a potential upside of 21.64%. Given Wheaton Precious Metals’ stronger consensus rating and higher possible upside, research analysts clearly believe Wheaton Precious Metals is more favorable than its competitors.

Risk and Volatility

Wheaton Precious Metals has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals’ competitors have a beta of 0.34, suggesting that their average share price is 66% less volatile than the S&P 500.

Insider and Institutional Ownership

52.3% of Wheaton Precious Metals shares are owned by institutional investors. Comparatively, 32.4% of shares of all “Gold & silver ores” companies are owned by institutional investors. 9.9% of shares of all “Gold & silver ores” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Wheaton Precious Metals and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wheaton Precious Metals 6.84% 5.56% 4.69%
Wheaton Precious Metals Competitors -8.65% 3.68% 2.67%

Earnings & Valuation

This table compares Wheaton Precious Metals and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wheaton Precious Metals $843.22 million $57.70 million 33.44
Wheaton Precious Metals Competitors $1.40 billion $84.66 million 45.86

Wheaton Precious Metals’ competitors have higher revenue and earnings than Wheaton Precious Metals. Wheaton Precious Metals is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Wheaton Precious Metals beats its competitors on 9 of the 15 factors compared.

About Wheaton Precious Metals

Wheaton Precious Metals Corp. operates as a silver and gold streaming company worldwide. It has streaming agreements for 21 operating mines and 8 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.

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