Wheaton Precious Metals (NYSE:WPM) and Gold Reserve (NYSE:GDRZF) Critical Contrast

Wheaton Precious Metals (NYSE:WPM) and Gold Reserve (OTCMKTS:GDRZF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Wheaton Precious Metals and Gold Reserve, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheaton Precious Metals 0 5 5 0 2.50
Gold Reserve 0 0 0 0 N/A

Wheaton Precious Metals presently has a consensus target price of $31.14, indicating a potential upside of 26.55%. Given Wheaton Precious Metals’ higher possible upside, analysts clearly believe Wheaton Precious Metals is more favorable than Gold Reserve.

Dividends

Wheaton Precious Metals pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Gold Reserve does not pay a dividend. Wheaton Precious Metals pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Wheaton Precious Metals and Gold Reserve’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wheaton Precious Metals $794.01 million 13.81 $427.11 million $0.48 51.27
Gold Reserve $51.57 million 3.51 $41.86 million N/A N/A

Wheaton Precious Metals has higher revenue and earnings than Gold Reserve.

Volatility and Risk

Wheaton Precious Metals has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500. Comparatively, Gold Reserve has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Profitability

This table compares Wheaton Precious Metals and Gold Reserve’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wheaton Precious Metals 50.78% 3.86% 3.12%
Gold Reserve N/A -19.14% -17.91%

Insider and Institutional Ownership

55.2% of Wheaton Precious Metals shares are held by institutional investors. 12.8% of Gold Reserve shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Wheaton Precious Metals beats Gold Reserve on 10 of the 13 factors compared between the two stocks.

Wheaton Precious Metals Company Profile

Wheaton Precious Metals Corp., a mining company, primarily sells precious metals in Canada and internationally. The company sells silver and gold ores. It has agreements for 19 operating mines and 9 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.

Gold Reserve Company Profile

Gold Reserve Inc., an exploration stage company, acquires, explores, and develops mineral properties. The company primarily focuses on the Siembra Minera Project, an open pit gold-copper mining project located in Bolivar, Venezuela. It also has an interest in the LMS Gold Project in Alaska. The company was founded in 1956 and is based in Spokane, Washington.

Receive News & Ratings for Wheaton Precious Metals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wheaton Precious Metals and related companies with MarketBeat.com's FREE daily email newsletter.