Wheaton Precious Metals Corp (NYSE: SLW) and Tahoe Resources (NYSE:TAHO) 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, dividends, risk, institutional ownership, profitabiliy, valuation and earnings.
Dividends
Wheaton Precious Metals Corp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Tahoe Resources pays an annual dividend of $0.24 per share and has a dividend yield of 4.6%. 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 pays out 49.0% of its earnings in the form of a dividend. Tahoe Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Wheaton Precious Metals Corp and Tahoe Resources’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Wheaton Precious Metals Corp | N/A | N/A | N/A | $0.01 | 2,093.09 |
| Tahoe Resources | $903.42 million | 1.81 | $450.60 million | $0.49 | 10.69 |
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.
Volatility and Risk
Wheaton Precious Metals Corp has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Tahoe Resources has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Wheaton Precious Metals Corp and Tahoe Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wheaton Precious Metals Corp | 0 | 2 | 9 | 0 | 2.82 |
| Tahoe Resources | 0 | 7 | 1 | 0 | 2.13 |
Wheaton Precious Metals Corp currently has a consensus price target of $27.70, indicating a potential upside of 32.47%. Tahoe Resources has a consensus price target of $19.50, indicating a potential upside of 272.14%. Given Tahoe Resources’ higher possible upside, analysts clearly believe Tahoe Resources is more favorable than Wheaton Precious Metals Corp.
Profitability
This table compares Wheaton Precious Metals Corp and Tahoe Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wheaton Precious Metals Corp | 30.93% | 4.95% | 4.01% |
| Tahoe Resources | 17.13% | 8.40% | 7.13% |
Institutional and Insider Ownership
49.2% of Wheaton Precious Metals Corp shares are owned by institutional investors. Comparatively, 64.6% of Tahoe Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Tahoe Resources beats Wheaton Precious Metals Corp on 8 of the 12 factors compared between the two stocks.
About Wheaton Precious Metals 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 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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