AuRico Gold (NYSE: AUQ) and Silver Wheaton Corp (NYSE:WPM) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares AuRico Gold and Silver Wheaton Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AuRico Gold -53.95% -8.75% -6.19%
Silver Wheaton Corp 25.05% 5.90% 4.78%

Valuation & Earnings

This table compares AuRico Gold and Silver Wheaton Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AuRico Gold N/A N/A N/A N/A N/A
Silver Wheaton Corp $889.33 million 10.25 $608.74 million $0.50 41.26

Silver Wheaton Corp has higher revenue and earnings than AuRico Gold.

Analyst Ratings

This is a breakdown of current ratings and target prices for AuRico Gold and Silver Wheaton Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AuRico Gold 0 0 0 0 N/A
Silver Wheaton Corp 0 1 3 0 2.75

Silver Wheaton Corp has a consensus price target of $27.25, suggesting a potential upside of 32.09%. Given Silver Wheaton Corp’s higher possible upside, analysts clearly believe Silver Wheaton Corp is more favorable than AuRico Gold.

Institutional and Insider Ownership

48.1% of Silver Wheaton Corp shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Silver Wheaton Corp pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. AuRico Gold does not pay a dividend. Silver Wheaton Corp pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Silver Wheaton Corp beats AuRico Gold on 8 of the 9 factors compared between the two stocks.

AuRico Gold Company Profile

AuRico Gold Inc (AuRico Gold), is a gold producer with mines and projects in North America. The Company’s operations include the Young-Davidson mine in Ontario, Canada and the El Chanate mine in Sonora, Mexico. The Company’s project pipeline also includes exploration and development in Canada and Mexico. The Company owns the Young-Davidson mine, located near the town of Matachewan in Northern Ontario, Canada. The property consists of mineral leases and claims totaling 4,733 hectares. The Company owns the El Chanate mine, located 37 kilometers northeast of the town of Caborca in the state of Sonora, Mexico. El Chanate consists of an open pit mine with heap leach processing facilities. The Company’s Kemess Underground project is a gold and copper project located in north-central British Columbia, Canada, approximately 430 kilometers northwest of Prince George. The Company also has interest in Las Lajas Project and Santa Fe Project.

Silver Wheaton Corp Company Profile

Wheaton Precious Metals Corp, formerly Silver Wheaton Corp, is a Canada-based pure precious metals streaming company engaged in the sale of silver and gold. The Company operates through eight segments: the silver produced by the San Dimas, Penasquito and Antamina mines, the gold produced by the Sudbury and Salobo mines, the silver and gold produced by the Constancia mine and the Other mines, and corporate operations. The Company has entered into long-term purchase agreements and early deposit long-term purchase agreement associated with silver and gold (precious metal purchase agreements), relating to mining assets, whereby Silver Wheaton acquires silver and gold production at various mines. The San Dimas gold-silver deposit is located in the San Dimas district on the border of Durango and Sinaloa states. The Company holds interest in Los Filos mine, Zinkgruvan mining operations, Stratoni mine, Keno Hill silver, Cozamin mine, Aljustrel mine, 777 mine and Constancia mines.

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