WPM vs. FNV, GOLD, AEM, GFI, AU, KGC, PAAS, NEM, TECK, and NTR
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 (GOLD), Agnico Eagle Mines (AEM), Gold Fields (GFI), AngloGold Ashanti (AU), Kinross Gold (KGC), Pan American Silver (PAAS), Newmont (NEM), Teck Resources (TECK), and Nutrien (NTR). These companies are all part of the "basic materials" sector.
Franco-Nevada (NYSE:FNV) and Wheaton Precious Metals (NYSE:WPM) are both large-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, community ranking, media sentiment, dividends and profitability.
Wheaton Precious Metals has lower revenue, but higher earnings 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.
Wheaton Precious Metals has a net margin of 52.92% compared to Wheaton Precious Metals' net margin of -39.88%. Wheaton Precious Metals' return on equity of 10.81% beat Franco-Nevada's return on equity.
Franco-Nevada pays an annual dividend of $1.44 per share and has a dividend yield of 1.1%. Wheaton Precious Metals pays an annual dividend of $0.62 per share and has a dividend yield of 1.1%. Franco-Nevada pays out -57.8% of its earnings in the form of a dividend. Wheaton Precious Metals pays out 52.1% 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 has increased its dividend for 1 consecutive years and Wheaton Precious Metals has increased its dividend for 1 consecutive years. Franco-Nevada is clearly the better dividend stock, given its higher yield and lower payout ratio.
77.1% of Franco-Nevada shares are owned by institutional investors. Comparatively, 70.3% of Wheaton Precious Metals shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Franco-Nevada has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
In the previous week, Franco-Nevada had 13 more articles in the media than Wheaton Precious Metals. MarketBeat recorded 19 mentions for Franco-Nevada and 6 mentions for Wheaton Precious Metals. Franco-Nevada's average media sentiment score of 1.47 beat Wheaton Precious Metals' score of 1.11 indicating that Wheaton Precious Metals is being referred to more favorably in the news media.
Franco-Nevada received 18 more outperform votes than Wheaton Precious Metals when rated by MarketBeat users. However, 61.36% of users gave Wheaton Precious Metals an outperform vote while only 55.23% of users gave Franco-Nevada an outperform vote.
Franco-Nevada presently has a consensus price target of $148.60, indicating a potential upside of 16.82%. Wheaton Precious Metals has a consensus price target of $54.30, indicating a potential downside of 2.09%. Given Wheaton Precious Metals' higher probable upside, equities research analysts clearly believe Franco-Nevada is more favorable than Wheaton Precious Metals.
Summary
Franco-Nevada and Wheaton Precious Metals 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.
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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