Financial Analysis: Wheaton Precious Metals (NYSE:WPM) vs. American Sierra Gold (OTCMKTS:AMNP)

American Sierra Gold (OTCMKTS:AMNP) and Wheaton Precious Metals (NYSE:WPM) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

70.3% of Wheaton Precious Metals shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for American Sierra Gold and Wheaton Precious Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Sierra Gold	0	0	0	0	0.00
Wheaton Precious Metals	0	1	13	0	2.93

Wheaton Precious Metals has a consensus target price of $155.45, indicating a potential upside of 11.84%. Given Wheaton Precious Metals’ stronger consensus rating and higher probable upside, analysts plainly believe Wheaton Precious Metals is more favorable than American Sierra Gold.

Valuation and Earnings

This table compares American Sierra Gold and Wheaton Precious Metals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Sierra Gold	N/A	N/A	N/A	N/A	N/A
Wheaton Precious Metals	$2.31 billion	27.27	$1.47 billion	$3.24	42.90

Wheaton Precious Metals has higher revenue and earnings than American Sierra Gold.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Sierra Gold	N/A	N/A	N/A
Wheaton Precious Metals	65.55%	20.87%	20.03%

Risk and Volatility

American Sierra Gold has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Summary

Wheaton Precious Metals beats American Sierra Gold on 8 of the 9 factors compared between the two stocks.

About American Sierra Gold

Medinah Gold, Inc. was incorporated in 1999 and is based in Nevada.

About Wheaton Precious Metals

Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. 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.