Wheaton Precious Metals (WPM) & Its Competitors Head to Head Analysis

Wheaton Precious Metals (NYSE:WPM) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Wheaton Precious Metals to related companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of current ratings for Wheaton Precious Metals and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wheaton Precious Metals	0	1	12	0	2.92
Wheaton Precious Metals Competitors	6413	22619	32328	1801	2.47

Wheaton Precious Metals currently has a consensus target price of $172.90, suggesting a potential upside of 26.36%. As a group, “Metals & Mining” companies have a potential upside of 27.14%. Given Wheaton Precious Metals’ peers higher probable upside, analysts clearly believe Wheaton Precious Metals has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wheaton Precious Metals	60.39%	22.20%	19.28%
Wheaton Precious Metals Competitors	-1,161,736,352,322,426,600.00%	-52.87%	-2.06%

Volatility & Risk

Wheaton Precious Metals has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals’ peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

70.3% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are held by institutional investors. 17.6% of shares of all “Metals & Mining” companies are held by 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.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Wheaton Precious Metals	$3.47 billion	$1.47 billion	29.75
Wheaton Precious Metals Competitors	$4.78 billion	$278.94 million	-26.12

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

Dividends

Wheaton Precious Metals pays an annual dividend of $0.78 per share and has a dividend yield of 0.6%. Wheaton Precious Metals pays out 17.0% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.0% and pay out 10.8% of their earnings in the form of a dividend. Wheaton Precious Metals has raised its dividend for 2 consecutive years. Wheaton Precious Metals lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Wheaton Precious Metals beats its peers on 8 of the 15 factors compared.

Wheaton Precious Metals Company Profile

Wheaton Precious Metals is a precious metals streaming company that provides mining companies with upfront financing in exchange for the right to purchase a portion of the metals produced by their mines. Its streams cover gold and silver, as well as smaller amounts of palladium and cobalt. Rather than operating mines itself, Wheaton works with mining companies around the world. Under its agreements, it typically makes an initial payment and additional payments for metals delivered, giving it exposure to mine production without directly managing mining operations.