Head to Head Review: Voestalpine (OTCMKTS:VLPNY) vs. Pan American Silver (NYSE:PAAS)

Voestalpine (OTCMKTS:VLPNY) and Pan American Silver (NYSE:PAAS) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares Voestalpine and Pan American Silver”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Voestalpine	$17.47 billion	0.46	$492.57 million	$0.70	13.39
Pan American Silver	$3.62 billion	4.50	$978.00 million	$3.73	10.60

Pan American Silver has lower revenue, but higher earnings than Voestalpine. Pan American Silver is trading at a lower price-to-earnings ratio than Voestalpine, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Voestalpine and Pan American Silver, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Voestalpine	0	2	4	0	2.67
Pan American Silver	0	5	5	0	2.50

Pan American Silver has a consensus price target of $67.71, suggesting a potential upside of 71.31%. Given Pan American Silver’s higher probable upside, analysts clearly believe Pan American Silver is more favorable than Voestalpine.

Profitability

This table compares Voestalpine and Pan American Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Voestalpine	3.39%	6.66%	3.30%
Pan American Silver	35.18%	21.05%	15.22%

Institutional and Insider Ownership

55.4% of Pan American Silver shares are owned by institutional investors. 12.9% of Pan American Silver shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Voestalpine pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Pan American Silver pays an annual dividend of $0.74 per share and has a dividend yield of 1.9%. Voestalpine pays out 12.9% of its earnings in the form of a dividend. Pan American Silver pays out 19.8% 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. Pan American Silver has raised its dividend for 2 consecutive years. Pan American Silver is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Voestalpine has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Summary

Pan American Silver beats Voestalpine on 12 of the 17 factors compared between the two stocks.

About Voestalpine

voestalpine AG is an Austria-based steel and technology group headquartered in Linz. Its business spans steel production and processing, specialty metals, metal forming, and railway infrastructure. The company supplies products and services to industries including automotive, rail, aerospace, energy, and mechanical engineering. Its offerings include high-performance steels and components, automotive parts, tooling, and rail, switch, and signaling systems. voestalpine’s roots trace to steelworks established in Linz in 1938.

About Pan American Silver

Pan American Silver Corp. is a mining company focused on the exploration, development and operation of silver and gold mines. Its products also include by-products such as zinc, lead and copper, which are recovered during mining and processing. Founded in 1994 and headquartered in Vancouver, British Columbia, the company operates mines and holds exploration and development interests in Canada and Latin America. Its portfolio has expanded over time through acquisitions, including its 2023 acquisition of Yamana Gold’s Canadian assets and interests in several mines in Latin America.