Financial Review: Wheaton Precious Metals (WPM) versus The Competition

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wheaton Precious Metals	64.66%	21.97%	19.83%
Wheaton Precious Metals Competitors	-1,168,050,136,845,918,000.00%	-53.17%	-2.08%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Wheaton Precious Metals	$2.31 billion	$1.47 billion	30.02
Wheaton Precious Metals Competitors	$174.75 billion	$278.94 million	-45.15

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

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’ rivals have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

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 17.3% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.3% 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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

70.3% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 16.2% of shares of all “Metals & Mining” companies are held by institutional investors. 17.5% of shares of all “Metals & Mining” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Wheaton Precious Metals and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wheaton Precious Metals	0	2	10	0	2.83
Wheaton Precious Metals Competitors	6404	22600	32300	1796	2.47

Wheaton Precious Metals currently has a consensus target price of $166.56, suggesting a potential upside of 23.01%. As a group, “Metals & Mining” companies have a potential upside of 30.92%. Given Wheaton Precious Metals’ rivals higher possible upside, analysts plainly believe Wheaton Precious Metals has less favorable growth aspects than its rivals.

Summary

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

Wheaton Precious Metals Company Profile

Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. 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.