Financial Comparison: Tahoe Resources (TAHO) versus Stillwater Mining Company (SWC)
Stillwater Mining Company (NYSE: SWC) and Tahoe Resources (NYSE:TAHO) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitabiliy.
This is a summary of recent ratings and recommmendations for Stillwater Mining Company and Tahoe Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stillwater Mining Company||0||2||1||0||2.33|
Stillwater Mining Company currently has a consensus target price of $18.67, suggesting a potential upside of 3.70%. Tahoe Resources has a consensus target price of $19.50, suggesting a potential upside of 263.81%. Given Tahoe Resources’ higher probable upside, analysts clearly believe Tahoe Resources is more favorable than Stillwater Mining Company.
Earnings & Valuation
This table compares Stillwater Mining Company and Tahoe Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stillwater Mining Company||N/A||N/A||N/A||$0.07||257.14|
|Tahoe Resources||$903.42 million||1.85||$450.60 million||$0.49||10.94|
Tahoe Resources has higher revenue and earnings than Stillwater Mining Company. Tahoe Resources is trading at a lower price-to-earnings ratio than Stillwater Mining Company, indicating that it is currently the more affordable of the two stocks.
This table compares Stillwater Mining Company and Tahoe Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stillwater Mining Company||2.80%||2.63%||1.83%|
Tahoe Resources pays an annual dividend of $0.24 per share and has a dividend yield of 4.5%. Stillwater Mining Company does not pay a dividend. Tahoe Resources pays out 49.0% of its earnings in the form of a dividend.
Risk & Volatility
Stillwater Mining Company has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Tahoe Resources has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Institutional and Insider Ownership
89.3% of Stillwater Mining Company shares are held by institutional investors. Comparatively, 64.2% of Tahoe Resources shares are held by institutional investors. 0.2% of Stillwater Mining Company shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Tahoe Resources beats Stillwater Mining Company on 7 of the 12 factors compared between the two stocks.
About Stillwater Mining Company
Stillwater Mining Company is engaged in the development, extraction, processing, smelting and refining of palladium, platinum and associated metals (platinum group metals (PGMs)) produced by mining a geological formation in south-central Montana, known as the J-M Reef. The Company operates through five segments: Mine Production, PGM Recycling, Canadian Properties, South American Properties and All Other. The Company is engaged in recycling spent catalytic converters and other industrial sources. The Company is also engaged in expanding its mining development along the J-M Reef, and holds exploration-stage properties at the Marathon PGM copper property, adjacent to Lake Superior in northern Ontario, Canada (Marathon), and at the Altar copper-gold property in San Juan province, Argentina. In addition to palladium and platinum, the Company’s operations produce associated by-product metals, including nickel, copper and minor amounts of gold, silver and rhodium.
About Tahoe Resources
Tahoe Resources Inc. is a mine operations, and mineral exploration and development company. The Company’s principal business activities are the exploration, development, operation and acquisition of mineral properties for the mining of precious metals in the Americas. Its business involves operating the Escobal mine, a silver mining operation located in southeastern Guatemala, the La Arena and Shahuindo mines, gold mining operations located in northwestern Peru, and the Bell Creek mine and mill and the Timmins West mine, gold mining operations located in northeastern Ontario, Canada. Its additional business objectives include the expansion of gold production at the Shahuindo and Bell Creek mines, the development of the Whitney Project and the ongoing exploration programs in Peru and Canada. It focuses on the initial evaluation of exploration/development projects with the main projects being the La Arena copper-gold sulfide project in Peru and the Fenn-Gib gold project in Canada.
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