Head-To-Head Review: Pan American Silver (PAAS) vs. The Competition

Pan American Silver (NYSE:PAAS) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Pan American Silver to similar companies based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Earnings & Valuation

This table compares Pan American Silver and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pan American Silver	$3.62 billion	$978.00 million	11.57
Pan American Silver Competitors	$4.65 billion	$279.61 million	-46.16

Pan American Silver’s rivals have higher revenue, but lower earnings than Pan American Silver. Pan American Silver is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

55.4% of Pan American Silver shares are owned by institutional investors. Comparatively, 15.8% of shares of all “Metals & Mining” companies are owned by institutional investors. 12.9% of Pan American Silver shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by 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

Pan American Silver pays an annual dividend of $0.74 per share and has a dividend yield of 1.9%. Pan American Silver pays out 22.4% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.7% and pay out 10.8% of their earnings in the form of a dividend. Pan American Silver has increased its dividend for 2 consecutive years. Pan American Silver lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pan American Silver and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pan American Silver	0	3	7	0	2.70
Pan American Silver Competitors	6401	22583	32286	1794	2.47

Pan American Silver currently has a consensus target price of $67.71, indicating a potential upside of 76.74%. As a group, “Metals & Mining” companies have a potential upside of 32.57%. Given Pan American Silver’s stronger consensus rating and higher possible upside, research analysts clearly believe Pan American Silver is more favorable than its rivals.

Volatility and Risk

Pan American Silver has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Pan American Silver’s rivals have a beta of 0.98, indicating that their average stock price is 2% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pan American Silver	32.04%	20.01%	14.48%
Pan American Silver Competitors	-1,168,050,136,845,918,000.00%	-53.13%	-2.10%

Summary

Pan American Silver beats its rivals on 9 of the 15 factors compared.

Pan American Silver Company Profile

Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.