Mountain Province Diamonds (NASDAQ: MPVD) and Silver Wheaton Corp (NYSE:WPM) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Insider and Institutional Ownership

26.3% of Mountain Province Diamonds shares are owned by institutional investors. Comparatively, 48.1% of Silver Wheaton Corp shares are owned by institutional investors. 4.8% of Mountain Province Diamonds shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Mountain Province Diamonds has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Silver Wheaton Corp has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Mountain Province Diamonds and Silver Wheaton Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mountain Province Diamonds 0 0 0 0 N/A
Silver Wheaton Corp 0 1 3 0 2.75

Silver Wheaton Corp has a consensus price target of $27.25, suggesting a potential upside of 31.26%. Given Silver Wheaton Corp’s higher probable upside, analysts plainly believe Silver Wheaton Corp is more favorable than Mountain Province Diamonds.

Profitability

This table compares Mountain Province Diamonds and Silver Wheaton Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mountain Province Diamonds N/A -2.64% -1.03%
Silver Wheaton Corp 25.05% 5.90% 4.78%

Valuation & Earnings

This table compares Mountain Province Diamonds and Silver Wheaton Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mountain Province Diamonds $21.80 million 25.36 $6.05 million ($0.03) -115.00
Silver Wheaton Corp $889.33 million 10.32 $608.74 million $0.50 41.52

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

Dividends

Silver Wheaton Corp pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Mountain Province Diamonds does not pay a dividend. Silver Wheaton Corp pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Silver Wheaton Corp beats Mountain Province Diamonds on 11 of the 14 factors compared between the two stocks.

Mountain Province Diamonds Company Profile

Mountain Province Diamonds Inc. is a resource company. The Company is focused on the mining and marketing of rough diamonds to the global market. The Company holds interests in the GK Diamond Mine. The GK Diamond Mine is located in the Northwest Territories (NWT) of Canada, in the District of Mackenzie, 300 kilometers east-northeast of Yellowknife and 80 kilometers east-southeast of the Snap Lake Mine. The GK Diamond Mine includes various kimberlite deposits, such as 5034, Hearne, Tesla and Tuzo. The GK Diamond Mine covers approximately 10,350 acres. The GK Diamond Mine includes four mining leases (numbers 4341, 4199, 4200 and 4201).

Silver Wheaton 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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