Head-To-Head Analysis: Pan American Silver (NYSE:PAAS) and REalloys (NASDAQ:ALOY)

REalloys (NASDAQ:ALOY) and Pan American Silver (NYSE:PAAS) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

3.6% of REalloys shares are owned by institutional investors. Comparatively, 55.4% of Pan American Silver shares are owned by institutional investors. 20.1% of REalloys shares are owned by company insiders. Comparatively, 12.9% of Pan American Silver shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares REalloys and Pan American Silver”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REalloys	$2.43 million	197.25	-$4.43 million	($3.16)	-2.18
Pan American Silver	$4.46 billion	3.67	$978.00 million	$3.73	10.66

Pan American Silver has higher revenue and earnings than REalloys. REalloys is trading at a lower price-to-earnings ratio than Pan American Silver, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares REalloys and Pan American Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REalloys	-5,145.12%	-192.93%	-163.20%
Pan American Silver	35.18%	20.94%	15.16%

Risk & Volatility

REalloys has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for REalloys and Pan American Silver, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REalloys	1	0	1	1	2.67
Pan American Silver	0	5	5	0	2.50

REalloys presently has a consensus price target of $16.00, suggesting a potential upside of 132.56%. Pan American Silver has a consensus price target of $67.71, suggesting a potential upside of 70.26%. Given REalloys’ stronger consensus rating and higher probable upside, equities research analysts clearly believe REalloys is more favorable than Pan American Silver.

Summary

Pan American Silver beats REalloys on 9 of the 15 factors compared between the two stocks.

About REalloys

REalloys Inc. is a rare earth materials company focused on producing rare earth metals and alloys used in permanent magnets and other advanced applications. Its products support industries including automotive, clean energy, electronics and defense. The company’s activities include processing rare earth materials into metal and alloy products for manufacturers. REalloys operates through Less Common Metals, a UK-based rare earth alloy producer, and is working to expand rare earth processing and production capacity in North America.

About Pan American Silver

Pan American Silver Corp. is a mining company focused on the exploration, development and operation of silver and gold mines. Its products also include by-products such as zinc, lead and copper, which are recovered during mining and processing. Founded in 1994 and headquartered in Vancouver, British Columbia, the company operates mines and holds exploration and development interests in Canada and Latin America. Its portfolio has expanded over time through acquisitions, including its 2023 acquisition of Yamana Gold’s Canadian assets and interests in several mines in Latin America.