Contrasting Pan American Silver Corp. (PAAS) and Silver Standard Resources (NASDAQ:SSRI)
Pan American Silver Corp. (NASDAQ: PAAS) and Silver Standard Resources (NASDAQ:SSRI) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitabiliy, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Institutional and Insider Ownership
50.2% of Pan American Silver Corp. shares are held by institutional investors. Comparatively, 47.2% of Silver Standard Resources shares are held by institutional investors. 12.9% of Pan American Silver Corp. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Pan American Silver Corp. has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Silver Standard Resources has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.
Pan American Silver Corp. pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Silver Standard Resources does not pay a dividend. Pan American Silver Corp. pays out 13.0% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Pan American Silver Corp. and Silver Standard Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pan American Silver Corp.||0||5||4||0||2.44|
|Silver Standard Resources||0||3||3||0||2.50|
Pan American Silver Corp. currently has a consensus price target of $20.00, suggesting a potential upside of 18.98%. Silver Standard Resources has a consensus price target of $14.25, suggesting a potential upside of 44.96%. Given Silver Standard Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Silver Standard Resources is more favorable than Pan American Silver Corp..
Earnings and Valuation
This table compares Pan American Silver Corp. and Silver Standard Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pan American Silver Corp.||$815.19 million||3.16||$294.08 million||$0.77||21.83|
|Silver Standard Resources||$507.38 million||2.32||$210.18 million||$0.68||14.46|
Pan American Silver Corp. has higher revenue and earnings than Silver Standard Resources. Silver Standard Resources is trading at a lower price-to-earnings ratio than Pan American Silver Corp., indicating that it is currently the more affordable of the two stocks.
This table compares Pan American Silver Corp. and Silver Standard Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pan American Silver Corp.||14.56%||6.13%||4.58%|
|Silver Standard Resources||15.31%||12.15%||7.67%|
Pan American Silver Corp. beats Silver Standard Resources on 10 of the 16 factors compared between the two stocks.
About Pan American Silver Corp.
Pan American Silver Corp. is a silver production company. The Company is principally engaged in the operation and development of, and exploration for, silver producing properties. The Company’s segments include Peru, Mexico, Argentina and Bolivia. The Company also produces and sells gold, zinc, lead and copper. The Company’s operating properties in Mexico include La Colorada Mine, Dolores and Alamo Dorado. The Company’s operating properties in Peru include Huaron Mine and Morococha Mine. The Company’s operating properties in Bolivia include San Vicente. The Company’s operating properties in Argentina include Manantial Espejo. The Company’s development properties include Navidad Property. The La Colorada underground silver mine is located in the Chalchihuites district in Zacatecas State, Mexico, approximately 99 kilometers south of Durango and 156 kilometers northwest of Zacatecas. The La Colorada consists of approximately 60 claims totaling approximately 8,400 hectares.
About Silver Standard Resources
Silver Standard Resources Inc. is a resource company. The Company is engaged in the operation, acquisition, exploration and development of precious metal resource properties located in the Americas. The Company’s segments include Pirquitas mine, Marigold mine, Seabee Gold Operation, and Exploration and evaluation properties. The Company has three producing mines and a portfolio of silver resource dominant projects located throughout the Americas. The Company is focused on silver production from the Pirquitas mine in Argentina and gold production from the Marigold mine in Nevada, the United States. The Company’s other projects include Seabee Gold Operation in Saskatchewan, Canada and Pirquitas mine in Jujuy, Argentina. The Marigold mine produced approximately 205,116 ounces of gold. The Seabee Gold Operation produced approximately 77,640 ounces of gold. The Pirquitas mine produced approximately 10.4 million ounces of silver.
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