Silver Wheaton Corp (NYSE: WPM) and Stillwater Mining (NYSE:SWC) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitabiliy, analyst recommendations, institutional ownership and risk.

Volatility and Risk

Silver Wheaton Corp has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Stillwater Mining has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Institutional & Insider Ownership

50.4% of Silver Wheaton Corp shares are held by institutional investors. Comparatively, 89.3% of Stillwater Mining shares are held by institutional investors. 0.2% of Stillwater Mining shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Silver Wheaton Corp and Stillwater Mining’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Silver Wheaton Corp $902.00 million 9.58 $617.05 million $0.49 39.92
Stillwater Mining N/A N/A N/A $0.07 257.14

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

Dividends

Silver Wheaton Corp pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Stillwater Mining does not pay a dividend. Silver Wheaton Corp pays out 57.1% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Silver Wheaton Corp 23.89% 5.81% 4.75%
Stillwater Mining 2.80% 2.63% 1.83%

Analyst Ratings

This is a breakdown of current ratings for Silver Wheaton Corp and Stillwater Mining, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silver Wheaton Corp 0 1 2 0 2.67
Stillwater Mining 0 2 1 0 2.33

Silver Wheaton Corp presently has a consensus price target of $27.67, suggesting a potential upside of 41.45%. Stillwater Mining has a consensus price target of $18.67, suggesting a potential upside of 3.70%. Given Silver Wheaton Corp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Silver Wheaton Corp is more favorable than Stillwater Mining.

Summary

Silver Wheaton Corp beats Stillwater Mining on 9 of the 13 factors compared between the two stocks.

About Silver Wheaton Corp

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.

About Stillwater Mining

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.

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