Head to Head Analysis: Sprott (SII) vs. Its Peers

Sprott (NYSE:SII) is one of 1,743 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its rivals? We will compare Sprott to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, valuation, risk and earnings.

Profitability

This table compares Sprott and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprott	27.87%	29.66%	21.78%
Sprott Competitors	317.76%	10.36%	3.68%

Earnings & Valuation

This table compares Sprott and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sprott	$401.64 million	$67.35 million	26.08
Sprott Competitors	$5.22 billion	$399.89 million	17.38

Sprott’s rivals have higher revenue and earnings than Sprott. Sprott 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sprott and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprott	0	1	2	0	2.67
Sprott Competitors	5574	20178	22518	647	2.37

Sprott currently has a consensus price target of $230.00, indicating a potential upside of 99.08%. As a group, “Capital Markets” companies have a potential upside of 23.10%. Given Sprott’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sprott is more favorable than its rivals.

Institutional and Insider Ownership

28.3% of Sprott shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 18.3% of Sprott shares are held by insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Sprott has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Sprott’s rivals have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Dividends

Sprott pays an annual dividend of $2.00 per share and has a dividend yield of 1.7%. Sprott pays out 45.1% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. Sprott has raised its dividend for 1 consecutive years. Sprott lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Sprott beats its rivals on 8 of the 15 factors compared.

Sprott Company Profile

Sprott Inc. is an alternative asset manager focused on precious metals and other natural resources. Through its asset-management businesses, the company offers investment strategies and products for individual and institutional investors. Its offerings include physical bullion trusts and exchange-traded funds, as well as managed accounts and private investment strategies. Sprott’s resource-focused investments include precious metals and materials used in the energy transition. Headquartered in Toronto, Sprott serves investors in North America and other markets through its investment products and services.