Reviewing OR Royalties (NYSE:OR) and Pan American Silver (NYSE:PAAS)

Pan American Silver (NYSE:PAAS) and OR Royalties (NYSE:OR) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Earnings and Valuation

This table compares Pan American Silver and OR Royalties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pan American Silver	$4.46 billion	3.46	$978.00 million	$3.73	10.05
OR Royalties	$381.32 million	17.06	$206.09 million	$1.36	25.66

Pan American Silver has higher revenue and earnings than OR Royalties. Pan American Silver is trading at a lower price-to-earnings ratio than OR Royalties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Pan American Silver and OR Royalties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pan American Silver	0	5	5	0	2.50
OR Royalties	0	4	4	0	2.50

Pan American Silver presently has a consensus price target of $67.71, indicating a potential upside of 80.58%. OR Royalties has a consensus price target of $42.50, indicating a potential upside of 21.80%. Given Pan American Silver’s higher probable upside, analysts clearly believe Pan American Silver is more favorable than OR Royalties.

Dividends

Pan American Silver pays an annual dividend of $0.74 per share and has a dividend yield of 2.0%. OR Royalties pays an annual dividend of $0.26 per share and has a dividend yield of 0.7%. Pan American Silver pays out 19.8% of its earnings in the form of a dividend. OR Royalties pays out 19.1% 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. Pan American Silver has increased its dividend for 2 consecutive years and OR Royalties has increased its dividend for 1 consecutive years. Pan American Silver is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Pan American Silver has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares Pan American Silver and OR Royalties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pan American Silver	35.18%	20.94%	15.16%
OR Royalties	67.03%	17.02%	14.86%

Institutional & Insider Ownership

55.4% of Pan American Silver shares are held by institutional investors. Comparatively, 68.5% of OR Royalties shares are held by institutional investors. 12.9% of Pan American Silver shares are held by company insiders. Comparatively, 0.6% of OR Royalties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Pan American Silver beats OR Royalties on 10 of the 15 factors compared between the two stocks.

About Pan American Silver

Pan American Silver Corp. is a mining company focused on the exploration, development and operation of silver and gold mines. Its products also include by-products such as zinc, lead and copper, which are recovered during mining and processing. Founded in 1994 and headquartered in Vancouver, British Columbia, the company operates mines and holds exploration and development interests in Canada and Latin America. Its portfolio has expanded over time through acquisitions, including its 2023 acquisition of Yamana Gold’s Canadian assets and interests in several mines in Latin America.

About OR Royalties

OR Royalties is a precious metals royalty and streaming company. Rather than operating mines directly, it provides financing to mining companies in exchange for royalties, streams, and other interests that can entitle it to a share of production or revenue from mineral projects. The company’s portfolio includes interests in gold and other mineral projects, including royalties associated with Canadian Malartic and Éléonore in Canada. Its assets span multiple jurisdictions, with a significant presence in the Americas.