Wheaton Precious Metals (NYSE:WPM) vs. Maverix Metals (NYSE:MMX) Critical Analysis
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 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.
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|
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.
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%|
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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