Tahoe Resources (NYSE: TAHO) and Wheaton Precious Metals Corp (NYSE:SLW) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitabiliy.

Profitability

This table compares Tahoe Resources and Wheaton Precious Metals Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tahoe Resources 17.13% 8.40% 7.13%
Wheaton Precious Metals Corp 30.93% 4.95% 4.01%

Analyst Ratings

This is a summary of current ratings for Tahoe Resources and Wheaton Precious Metals Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tahoe Resources 0 7 1 0 2.13
Wheaton Precious Metals Corp 0 2 9 0 2.82

Tahoe Resources currently has a consensus price target of $19.50, indicating a potential upside of 255.19%. Wheaton Precious Metals Corp has a consensus price target of $27.70, indicating a potential upside of 32.47%. Given Tahoe Resources’ higher probable upside, equities research analysts clearly believe Tahoe Resources is more favorable than Wheaton Precious Metals Corp.

Institutional and Insider Ownership

65.2% of Tahoe Resources shares are held by institutional investors. Comparatively, 49.2% of Wheaton Precious Metals Corp shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Tahoe Resources pays an annual dividend of $0.24 per share and has a dividend yield of 4.4%. Wheaton Precious Metals Corp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Tahoe Resources pays out 49.0% of its earnings in the form of a dividend. Wheaton Precious Metals Corp pays out 2,402.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tahoe Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Tahoe Resources has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals Corp has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Valuation and Earnings

This table compares Tahoe Resources and Wheaton Precious Metals Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tahoe Resources $903.42 million 1.90 $450.60 million $0.49 11.20
Wheaton Precious Metals Corp N/A N/A N/A $0.01 2,093.09

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

Summary

Tahoe Resources beats Wheaton Precious Metals Corp on 8 of the 12 factors compared between the two stocks.

Tahoe Resources Company Profile

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.

Wheaton Precious Metals Corp Company Profile

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.

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