Buenaventura Mining (NYSE:BVN – Get Free Report) and Wheaton Precious Metals (NYSE:WPM – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Risk & Volatility
Buenaventura Mining has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
Dividends
Buenaventura Mining pays an annual dividend of $1.09 per share and has a dividend yield of 3.6%. Wheaton Precious Metals pays an annual dividend of $0.78 per share and has a dividend yield of 0.6%. Buenaventura Mining pays out 24.7% 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 increased its dividend for 2 consecutive years.
Earnings and Valuation
This table compares Buenaventura Mining and Wheaton Precious Metals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Buenaventura Mining | $1.73 billion | 4.48 | $782.15 million | $4.42 | 6.91 |
| Wheaton Precious Metals | $2.31 billion | 26.00 | $1.47 billion | $4.51 | 29.38 |
Wheaton Precious Metals has higher revenue and earnings than Buenaventura Mining. Buenaventura 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.
Institutional and Insider Ownership
70.3% of Wheaton Precious Metals shares are held by institutional investors. 19.3% of Buenaventura Mining shares are held 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.
Analyst Recommendations
This is a summary of recent recommendations for Buenaventura Mining and Wheaton Precious Metals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Buenaventura Mining | 0 | 2 | 2 | 0 | 2.50 |
| Wheaton Precious Metals | 0 | 1 | 10 | 0 | 2.91 |
Buenaventura Mining presently has a consensus target price of $37.25, suggesting a potential upside of 21.93%. Wheaton Precious Metals has a consensus target price of $172.11, suggesting a potential upside of 29.87%. Given Wheaton Precious Metals’ stronger consensus rating and higher probable upside, analysts clearly believe Wheaton Precious Metals is more favorable than Buenaventura Mining.
Profitability
This table compares Buenaventura Mining and Wheaton Precious Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Buenaventura Mining | 50.88% | 26.53% | 18.88% |
| Wheaton Precious Metals | 64.66% | 21.97% | 19.83% |
Summary
Wheaton Precious Metals beats Buenaventura Mining on 14 of the 17 factors compared between the two stocks.
About Buenaventura Mining
Compañía de Minas Buenaventura S.A.A. engages in the exploration, development, construction, and operation of mineral processing business. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company owns interests in Colquijirca, La Zanja, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces monohydrate manganese sulphate; and operates hydroelectric power plants. Compañía de Minas Buenaventura S.A.A. was incorporated in 1953 and is based in Lima, Peru.
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.
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