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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Wheaton Precious Metals and AngloGold Ashanti, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheaton Precious Metals 0 4 5 0 2.56
AngloGold Ashanti 1 3 0 0 1.75

Wheaton Precious Metals presently has a consensus price target of $32.00, suggesting a potential upside of 36.99%. AngloGold Ashanti has a consensus price target of $12.50, suggesting a potential downside of 4.43%. Given Wheaton Precious Metals’ stronger consensus rating and higher possible upside, analysts clearly believe Wheaton Precious Metals is more favorable than AngloGold Ashanti.

Dividends

Wheaton Precious Metals pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. AngloGold Ashanti pays an annual dividend of $0.05 per share and has a dividend yield of 0.4%. Wheaton Precious Metals pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AngloGold Ashanti pays out 9.4% of its earnings in the form of a dividend.

Insider & Institutional Ownership

55.5% of Wheaton Precious Metals shares are held by institutional investors. Comparatively, 40.3% of AngloGold Ashanti shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Wheaton Precious Metals and AngloGold Ashanti’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wheaton Precious Metals $794.01 million 13.07 $427.11 million $0.48 48.67
AngloGold Ashanti $3.94 billion 1.36 $133.00 million $0.53 24.68

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

Profitability

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

Net Margins Return on Equity Return on Assets
Wheaton Precious Metals 53.79% 4.18% 3.45%
AngloGold Ashanti N/A N/A N/A

Summary

Wheaton Precious Metals beats AngloGold Ashanti on 11 of the 14 factors compared between the two stocks.

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.

AngloGold Ashanti Company Profile

AngloGold Ashanti Limited operates as a gold mining company. It also produces silver, uranium, and sulphuric acid; and dóre bars. The company operates 14 mines and 3 projects in 10 countries in South Africa, Continental Africa, the Americas, and Australasia. AngloGold Ashanti Limited was incorporated in 1944 and is headquartered in Johannesburg, South Africa.

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