Wheaton Precious Metals (WPM) versus Alamos Gold (AGI) Head to Head Analysis

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

Earnings and Valuation

This table compares Wheaton Precious Metals and Alamos Gold’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wheaton Precious Metals $843.22 million 10.96 $57.70 million $0.63 33.06
Alamos Gold $542.80 million 3.45 $26.60 million $0.12 40.00

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Wheaton Precious Metals and Alamos Gold, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheaton Precious Metals 0 0 5 0 3.00
Alamos Gold 0 2 3 0 2.60

Wheaton Precious Metals currently has a consensus price target of $27.50, indicating a potential upside of 32.02%. Alamos Gold has a consensus price target of $8.88, indicating a potential upside of 84.90%. Given Alamos Gold’s higher possible upside, analysts clearly believe Alamos Gold is more favorable than Wheaton Precious Metals.

Institutional & Insider Ownership

52.8% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 59.8% of Alamos Gold shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Wheaton Precious Metals 7.65% 5.75% 4.93%
Alamos Gold 2.50% 1.70% 1.38%

Dividends

Wheaton Precious Metals pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Alamos Gold pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Wheaton Precious Metals pays out 57.1% of its earnings in the form of a dividend. Alamos Gold pays out 16.7% 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 and Risk

Wheaton Precious Metals has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Summary

Wheaton Precious Metals beats Alamos Gold on 10 of the 15 factors compared between the two stocks.

About Wheaton Precious Metals

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.

About Alamos Gold

Alamos Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and extraction of gold deposits in North America. It also explores for silver and precious metals. The company holds interests in the Young-Davidson mine, which includes contiguous mineral leases and claims totaling 11,000 acres located in Northern Ontario, Canada; the Mulatos mine located within the Salamandra Concessions in the Sierra Madre Occidental mountain range in the east-central portion of the State of Sonora, Mexico; and the El Chanate mine that comprises 22 mineral concessions covering 4,618 hectares situated in the State of Sonora, Mexico. It also holds interests in a portfolio of development stage projects in Turkey, Canada, Mexico, and the United States. The company was formerly known as AuRico Gold Inc. and changed its name to Alamos Gold Inc. in July 2015. Alamos Gold Inc. is headquartered in Toronto, Canada.

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