Comparing Lifezone Metals (NYSE:LZM) and Wheaton Precious Metals (NYSE:WPM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wheaton Precious Metals	64.66%	21.97%	19.83%
Lifezone Metals	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Wheaton Precious Metals and Lifezone Metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wheaton Precious Metals	0	1	11	0	2.92
Lifezone Metals	1	1	1	0	2.00

Wheaton Precious Metals presently has a consensus target price of $166.00, suggesting a potential upside of 22.67%. Lifezone Metals has a consensus target price of $7.00, suggesting a potential upside of 80.93%. Given Lifezone Metals’ higher probable upside, analysts clearly believe Lifezone Metals is more favorable than Wheaton Precious Metals.

Risk and Volatility

Wheaton Precious Metals has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Lifezone Metals has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

70.3% of Wheaton Precious Metals shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wheaton Precious Metals	$3.17 billion	19.38	$1.47 billion	$4.51	30.00
Lifezone Metals	$1.06 million	307.33	-$13.63 million	($4.67)	-0.83

Wheaton Precious Metals has higher revenue and earnings than Lifezone Metals. Lifezone Metals 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 Lifezone Metals on 10 of the 13 factors compared between the two stocks.

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.

About Lifezone Metals

Lifezone Metals Limited engages in the extraction and refining of metals. It supplies lower-carbon and sulfur dioxide emission metals to the battery storage, EV, and hydrogen markets. The company’s products include nickel, copper, and cobalt. Its flagship project is the Kabanga nickel project in North-West Tanzania. The company is based in Ramsey, Isle of Man.