Critical Review: Orbite Aluminae (OTCMKTS:EORBF) & Wheaton Precious Metals (NYSE:WPM)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Wheaton Precious Metals and Orbite Aluminae, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wheaton Precious Metals	0	3	8	1	2.83
Orbite Aluminae	0	0	0	0	0.00

Wheaton Precious Metals currently has a consensus target price of $101.44, suggesting a potential downside of 5.86%. Given Orbite Aluminae’s higher possible upside, analysts clearly believe Orbite Aluminae is more favorable than Wheaton Precious Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wheaton Precious Metals	47.46%	11.96%	11.64%
Orbite Aluminae	N/A	N/A	N/A

Valuation and Earnings

This table compares Wheaton Precious Metals and Orbite Aluminae”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wheaton Precious Metals	$1.66 billion	29.43	$529.14 million	$1.73	62.29
Orbite Aluminae	N/A	N/A	N/A	N/A	N/A

Wheaton Precious Metals has higher revenue and earnings than Orbite Aluminae.

Insider & Institutional Ownership

70.3% of Wheaton Precious Metals shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Wheaton Precious Metals has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Orbite Aluminae has a beta of -8.89, suggesting that its share price is 989% less volatile than the S&P 500.

Summary

Wheaton Precious Metals beats Orbite Aluminae on 9 of the 10 factors compared between the two stocks.

About Wheaton Precious Metals

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.

About Orbite Aluminae

Orbite Technologies Inc. operates as a clean technology based mineral-processing and resource development company in Canada. It produces high-purity alumina, silica, hematite, magnesium oxide, titanium oxide, smelter-grade alumina, and rare earth and rare metal oxides from various feedstocks, including red mud, fly-ash, aluminous clays, mine tailings, bauxite, and kaolin clay, as well as serpentine residues from chrysotile processing sites. The company owns 100% interest in 99 mineral claims totaling approximately 55 square kilometers, as well as 1 mining lease of 98.5 hectares at a site near Grande-Vallée, Québec. It also owns 100% interest in 138 mineral claims covering approximately 78.4 square kilometers at sites near Rimouski and Cap-Chat, Québec. The company was formerly known as Orbite Aluminae Inc. and changed its name to Orbite Technologies Inc. in June 2015. Orbite Technologies Inc. was incorporated in 1983 and is headquartered in Laval, Canada.