Analyzing Wheaton Precious Metals (NYSE:WPM) & Select Sands (OTCMKTS:SLSDF)

Select Sands (OTCMKTS:SLSDF) and Wheaton Precious Metals (NYSE:WPM) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

70.3% of Wheaton Precious Metals shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Select Sands and Wheaton Precious Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Select Sands	N/A	N/A	N/A
Wheaton Precious Metals	54.72%	13.32%	12.89%

Analyst Recommendations

This is a breakdown of current recommendations for Select Sands and Wheaton Precious Metals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Sands	0	0	0	0	0.00
Wheaton Precious Metals	0	1	10	1	3.00

Wheaton Precious Metals has a consensus price target of $140.44, indicating a potential downside of 3.80%. Given Select Sands’ higher probable upside, analysts plainly believe Select Sands is more favorable than Wheaton Precious Metals.

Valuation & Earnings

This table compares Select Sands and Wheaton Precious Metals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Select Sands	N/A	N/A	N/A	($0.04)	N/A
Wheaton Precious Metals	$1.28 billion	51.60	$529.14 million	$2.20	66.36

Wheaton Precious Metals has higher revenue and earnings than Select Sands. Select Sands 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.

Summary

Wheaton Precious Metals beats Select Sands on 9 of the 10 factors compared between the two stocks.

About Select Sands

Select Sands Corp., together with its subsidiaries, engages in quarrying and producing silica sand. The company holds interest in the Sandtown project located in northeast Arkansas, the United States. It sells its products to industrial and energy customers. The company was formerly known as La Ronge Gold Corp. and changed its name to Select Sands Corp. in November 2014. Select Sands Corp. was incorporated in 2006 and is based in Houston, Texas.

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.