Pan American Silver Corp. (NASDAQ: PAAS) and Silvercorp Metals (OTCMKTS:SVMLF) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitabiliy.
Volatility & Risk
Pan American Silver Corp. has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Silvercorp Metals has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
This table compares Pan American Silver Corp. and Silvercorp Metals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pan American Silver Corp.||14.56%||6.13%||4.58%|
Valuation & Earnings
This table compares Pan American Silver Corp. and Silvercorp Metals’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pan American Silver Corp.||$815.19 million||3.17||$294.08 million||$0.77||21.92|
|Silvercorp Metals||$148.83 million||3.69||$73.14 million||$0.17||19.33|
Pan American Silver Corp. has higher revenue and earnings than Silvercorp Metals. Silvercorp Metals is trading at a lower price-to-earnings ratio than Pan American Silver Corp., indicating that it is currently the more affordable of the two stocks.
Pan American Silver Corp. pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Silvercorp Metals pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Pan American Silver Corp. pays out 13.0% of its earnings in the form of a dividend. Silvercorp Metals pays out 5.9% 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.
This is a summary of current recommendations for Pan American Silver Corp. and Silvercorp Metals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pan American Silver Corp.||0||5||4||0||2.44|
Pan American Silver Corp. presently has a consensus price target of $20.00, indicating a potential upside of 18.48%. Given Pan American Silver Corp.’s higher possible upside, analysts clearly believe Pan American Silver Corp. is more favorable than Silvercorp Metals.
Insider & Institutional Ownership
50.2% of Pan American Silver Corp. shares are owned by institutional investors. Comparatively, 0.0% of Silvercorp Metals shares are owned by institutional investors. 12.9% of Pan American Silver Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Pan American Silver Corp. beats Silvercorp Metals on 12 of the 15 factors compared between the two stocks.
Pan American Silver Corp. Company Profile
Pan American Silver Corp. is a silver production company. The Company is principally engaged in the operation and development of, and exploration for, silver producing properties. The Company’s segments include Peru, Mexico, Argentina and Bolivia. The Company also produces and sells gold, zinc, lead and copper. The Company’s operating properties in Mexico include La Colorada Mine, Dolores and Alamo Dorado. The Company’s operating properties in Peru include Huaron Mine and Morococha Mine. The Company’s operating properties in Bolivia include San Vicente. The Company’s operating properties in Argentina include Manantial Espejo. The Company’s development properties include Navidad Property. The La Colorada underground silver mine is located in the Chalchihuites district in Zacatecas State, Mexico, approximately 99 kilometers south of Durango and 156 kilometers northwest of Zacatecas. The La Colorada consists of approximately 60 claims totaling approximately 8,400 hectares.
Silvercorp Metals Company Profile
Silvercorp Metals Inc. (Silvercorp) is a silver-producing Canadian mining company. The Company is engaged in the acquisition, exploration, development, and mining of silver-related mineral properties in China. The Company’s segments include Mining, including projects, such as Henan Luoning, Hunan, Guangdong and Other, and Administrative, which includes Beijing and Vancouver. The Company is the primary silver producer in China through the operation of over four silver-lead-zinc mines in the Ying Mining District in Henan Province, China, including SGX, HZG, TLP, Haopinggou (HPG) and the LM mines. The Company also has commercial production at its Gaocheng (GC) silver-lead-zinc project in Guangdong Province. Silvercorp’s principal products and source of sales are silver-bearing lead and zinc concentrates and some direct smelting ores. The Company sells all its products to local smelters or companies in the mineral products trading business.
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