Head to Head Contrast: Barrick Gold (ABX) versus Wheaton Precious Metals (WPM)

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Editorial Staff Wcryptn

Date: 10.08.2018

Barrick Gold (NYSE: ABX) and Wheaton Precious Metals (NYSE:WPM) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Dividends

Barrick Gold pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Wheaton Precious Metals pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Barrick Gold pays out 16.0% of its earnings in the form of a dividend. Wheaton Precious Metals pays out 57.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

Barrick Gold has a beta of -0.44, suggesting that its share price is 144% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Institutional and Insider Ownership

53.0% of Barrick Gold shares are owned by institutional investors. Comparatively, 52.8% of Wheaton Precious Metals shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Barrick Gold and Wheaton Precious Metals’ net margins, return on equity and return on assets.

 

Net Margins

Return on Equity

Return on Assets

Barrick Gold

-3.38%

6.13%

2.74%

Wheaton Precious Metals

7.65%

5.75%

4.93%

Valuation & Earnings

This table compares Barrick Gold and Wheaton Precious Metals’ top-line revenue, earnings per share (EPS) and valuation.

 

Gross Revenue

Price/Sales Ratio

Net Income

Earnings Per Share

Price/Earnings Ratio

Barrick Gold

$8.37 billion

1.52

$1.44 billion

$0.75

14.56

Wheaton Precious Metals

$843.22 million

11.01

$57.70 million

$0.63

33.22

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Barrick Gold and Wheaton Precious Metals, as provided by MarketBeat.

 

Sell Ratings

Hold Ratings

Buy Ratings

Strong Buy Ratings

Rating Score

Barrick Gold

2

15

1

0

1.94

Wheaton Precious Metals

0

0

5

0

3.00

Barrick Gold currently has a consensus target price of $15.04, indicating a potential upside of 37.71%. Wheaton Precious Metals has a consensus target price of $27.50, indicating a potential upside of 31.39%. Given Barrick Gold’s higher possible upside, equities analysts plainly believe Barrick Gold is more favorable than Wheaton Precious Metals.

Summary

Wheaton Precious Metals beats Barrick Gold on 8 of the 15 factors compared between the two stocks.

Barrick Gold Company Profile

Barrick Gold Corporation engages in the exploration and development of mineral properties. It primarily explores for gold and copper deposits. The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zaldívar, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia. It also owns gold mines and exploration properties in Africa; and gold projects located in South America and North America. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada.

Wheaton Precious Metals Company Profile

Wheaton Precious Metals Corp. operates as a silver and gold streaming company in Canada and internationally. It has streaming agreements for 20 operating mines and 9 development stage projects. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.

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