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The shares of Wheaton Precious Metals Corp. (NYSE:WPM) and Pretium Resources, Inc. (NYSE:PVG) were among the active stocks of the last trading sessions. Wheaton Precious Metals Corp. (NYSE:WPM) soared to 0.4% closing at the price of $22.68 whereas the shares of Pretium Resources, Inc. (NYSE:PVG) soared 3.05% with the increase of 0.239999999999999 points closing at the price of $8.1. Wheaton Precious Metals Corp. has currently increase 1.89% in its stock over the period of 6-months while its rival Pretium Resources, Inc. subtracted -29.87% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money, The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Wheaton Precious Metals Corp. (NYSE:WPM) is 1.3% while the ROI of Pretium Resources, Inc. (NYSE:PVG) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WPM’s EBITDA Margin is 17.81 whereas PVG’s is 21.05.
Both the profitability ratios suggest a mixed sentiment for Wheaton Precious Metals Corp. (NYSE:WPM) and Pretium Resources, Inc. (NYSE:PVG).
EPS & Surprise Factor
Wheaton Precious Metals Corp. (NYSE:WPM) reported $0.16/share EPS for the previous quarter where analysts were predicting an EPS to be $0.15/share Thus beating the analyst Estimates with a Surprise Factor of 6.7 Percent. While, Pretium Resources, Inc. (NYSE:PVG) reported EPS of $0.05/share in the last quarter. The analysts projected EPS of $0.08/share depicting a Surprise of -37.5 Percent.
Taking a look at Earnings per Share, Wheaton Precious Metals Corp. tends to be beating the analyst estimates more than Pretium Resources, Inc.. so WPM is more profitable than PVG.
Technical Analysis of Wheaton Precious Metals Corp. & Pretium Resources, Inc.
Moving average convergence divergence (MACD) shows that Wheaton Precious Metals Corp. (NYSE:WPM) is on a PRICE RELATIVITY trend While Pretium Resources, Inc. (NYSE:PVG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Wheaton Precious Metals Corp. was in BULLISH territory and Pretium Resources, Inc. was in BULLISH territory.
WPM’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While PVG’s candle is BULLISH with HIGH.
EPS Growth Rate: WPM’s 7.3% versus PVG’s 0%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Wheaton Precious Metals Corp. (NYSE:WPM) is predicted at 7.3% while Pretium Resources, Inc. (NYSE:PVG) stands at 0%. These numbers suggest that WPM is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of WPM stands at 2.5 while PVG is at 0 whereas the debt ratio of the prior is 0.13 while the debt ratio of the later is 0.
The values of the both ratios suggest that WPM is more suitable investment when the liquidity and risk is the main concern.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 1.8 for WPM and 2 for PVG which means WPM has Buy rating whereas PVG has Buy rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for WPM is $27.35 which is 17.07% of its current price while PVG has price target of 13.66 which is 40.7% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
WPM currently has price to earning P/E ratio of 155.34 whereas PVG has 0 while the forward P/E ratio for the prior stands at 31.24 and for the later it depicts the value of 16.2.
The price to Book P/B for WPM is 2.04, Price to Sale is at 11.89 and for PVG these ratios stand at 1.75 and 5.49.
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