Wheaton Precious Metals (NYSE:WPM) and Barrick Mining (NYSE:B) Head-To-Head Survey

Barrick Mining (NYSE:B) and Wheaton Precious Metals (NYSE:WPM) are both large-cap materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Barrick Mining 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
Barrick Mining	$16.96 billion	3.73	$4.99 billion	$3.88	9.97
Wheaton Precious Metals	$3.17 billion	17.63	$1.47 billion	$4.51	27.30

Barrick Mining has higher revenue and earnings than Wheaton Precious Metals. Barrick Mining 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 Barrick Mining and Wheaton Precious Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barrick Mining	31.60%	16.02%	11.22%
Wheaton Precious Metals	64.66%	21.97%	19.83%

Insider and Institutional Ownership

90.8% of Barrick Mining shares are held by institutional investors. Comparatively, 70.3% of Wheaton Precious Metals shares are held by institutional investors. 5.2% of Barrick Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Barrick Mining has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Dividends

Barrick Mining pays an annual dividend of $0.70 per share and has a dividend yield of 1.8%. Wheaton Precious Metals pays an annual dividend of $0.78 per share and has a dividend yield of 0.6%. Barrick Mining pays out 18.0% of its earnings in the form of a dividend. Wheaton Precious Metals pays out 17.3% 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. Wheaton Precious Metals has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Barrick Mining and Wheaton Precious Metals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barrick Mining	0	6	15	1	2.77
Wheaton Precious Metals	0	1	10	0	2.91

Barrick Mining presently has a consensus price target of $52.59, indicating a potential upside of 36.00%. Wheaton Precious Metals has a consensus price target of $172.11, indicating a potential upside of 39.80%. Given Wheaton Precious Metals’ stronger consensus rating and higher probable upside, analysts clearly believe Wheaton Precious Metals is more favorable than Barrick Mining.

Summary

Wheaton Precious Metals beats Barrick Mining on 11 of the 18 factors compared between the two stocks.

About Barrick Mining

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
 
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex.  Barrick owns and operates six Tier One gold mines:  Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
 
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.

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.