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

Earnings and Valuation

This table compares Wheaton Precious Metals and Maverix Metals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wheaton Precious Metals $861.33 million 22.93 $86.14 million $0.56 78.66
Maverix Metals $33.24 million 15.13 -$7.67 million $0.06 70.00

Wheaton Precious Metals has higher revenue and earnings than Maverix Metals. Maverix Metals is trading at a lower price-to-earnings ratio than Wheaton Precious Metals, indicating that it is currently the more affordable of the two stocks.

Dividends

Wheaton Precious Metals pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Maverix Metals pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. Wheaton Precious Metals pays out 71.4% of its earnings in the form of a dividend. Maverix Metals pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wheaton Precious Metals has raised its dividend for 1 consecutive years. Maverix Metals is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and target prices for Wheaton Precious Metals and Maverix Metals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheaton Precious Metals 0 6 5 0 2.45
Maverix Metals 0 1 3 0 2.75

Wheaton Precious Metals presently has a consensus target price of $41.89, suggesting a potential downside of 4.91%. Maverix Metals has a consensus target price of $7.28, suggesting a potential upside of 73.21%. Given Maverix Metals’ stronger consensus rating and higher probable upside, analysts plainly believe Maverix Metals is more favorable than Wheaton Precious Metals.

Insider & Institutional Ownership

58.5% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 6.2% of Maverix Metals shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Wheaton Precious Metals 13.88% 5.59% 4.69%
Maverix Metals -21.01% 3.00% 2.43%

Summary

Wheaton Precious Metals beats Maverix Metals on 11 of the 15 factors compared between the two stocks.

About Wheaton Precious Metals

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.

About Maverix Metals

Maverix Metals Inc., a precious metals royalty and streaming company, engages in the exploration and development of mineral properties. The company explores for gold, silver, and other precious metals. It holds a portfolio of 46 development and exploration stage royalties in the United States, Canada, Australia, and internationally. The company was incorporated in 2016 and is headquartered in Vancouver, Canada.

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