Seabridge Gold (NYSE: SA) and Wheaton Precious Metals (NYSE:WPM) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Risk and Volatility
Seabridge Gold has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
This table compares Seabridge Gold and Wheaton Precious Metals’ 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%|
Insider and Institutional Ownership
26.1% of Seabridge Gold shares are owned by institutional investors. Comparatively, 55.1% of Wheaton Precious Metals shares are owned by institutional investors. 12.8% of Seabridge Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Seabridge Gold and Wheaton Precious Metals’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Seabridge Gold||N/A||N/A||-$7.93 million||N/A||N/A|
|Wheaton Precious Metals||$843.22 million||11.34||$57.70 million||$0.63||34.29|
Wheaton Precious Metals has higher revenue and earnings than Seabridge Gold.
Wheaton Precious Metals pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Seabridge Gold does not pay a dividend. Wheaton Precious Metals pays out 57.1% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for Seabridge Gold and Wheaton Precious Metals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wheaton Precious Metals||0||1||5||0||2.83|
Wheaton Precious Metals has a consensus target price of $28.00, indicating a potential upside of 29.63%. Given Wheaton Precious Metals’ higher probable upside, analysts plainly believe Wheaton Precious Metals is more favorable than Seabridge Gold.
Wheaton Precious Metals beats Seabridge Gold on 10 of the 12 factors compared between the two stocks.
Seabridge Gold Company Profile
Seabridge Gold Inc., a development stage company, together with its subsidiaries, engages in the acquisition and exploration of gold properties located in North America. The company also explores for copper and silver ores. It holds a 100% interest in various North American gold resource projects. The company's principal assets are the Kerr-Sulphurets-Mitchell and Iskut properties located near Stewart, British Columbia, Canada, as well as the Courageous Lake gold project located in Canada's Northwest Territories. The company was formerly known as Seabridge Resources Inc. and changed its name to Seabridge Gold Inc. in June 2002. Seabridge Gold Inc. was founded in 1979 and is based 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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