Vallourec (OTCMKTS:VLOWY – Get Free Report) and Pan American Silver (NYSE:PAAS – Get Free Report) are both 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.
Dividends
Vallourec pays an annual dividend of $0.35 per share and has a dividend yield of 8.2%. Pan American Silver pays an annual dividend of $0.74 per share and has a dividend yield of 1.5%. Vallourec pays out 106.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pan American Silver pays out 22.4% of its earnings in the form of a dividend. Pan American Silver has raised its dividend for 2 consecutive years.
Insider and Institutional Ownership
55.4% of Pan American Silver shares are held by institutional investors. 12.9% of Pan American Silver 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.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vallourec | $4.31 billion | 1.31 | $401.23 million | $0.33 | 12.89 |
| Pan American Silver | $3.62 billion | 5.58 | $978.00 million | $3.31 | 14.75 |
Pan American Silver has lower revenue, but higher earnings than Vallourec. Vallourec 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.
Analyst Ratings
This is a summary of current ratings and target prices for Vallourec and Pan American Silver, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vallourec | 0 | 0 | 1 | 0 | 3.00 |
| Pan American Silver | 0 | 3 | 7 | 0 | 2.70 |
Pan American Silver has a consensus price target of $67.71, indicating a potential upside of 38.70%. Given Pan American Silver’s higher probable upside, analysts clearly believe Pan American Silver is more favorable than Vallourec.
Volatility & Risk
Vallourec has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Profitability
This table compares Vallourec and Pan American Silver’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vallourec | 9.49% | 14.98% | 7.50% |
| Pan American Silver | 32.04% | 20.01% | 14.48% |
Summary
Pan American Silver beats Vallourec on 14 of the 17 factors compared between the two stocks.
About Vallourec
Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, the Middle East, and internationally. It operates through Tubes; Mine & Forests; and Holding Companies & Other segments. The company offers seamless tubes for refineries, petrochemical facilities, and floating liquefied natural gas plants, as well as production, storage, and offloading units; VAM connections; rigid subsea line pipes and onshore rigid line pipes; and carbon steel and steel alloy tubes, hollow bars, and connections. It also provides assistance in lowering tubes, inspecting connections, and supervising assembly; thread tubes inventory management; tube inspection, maintenance, and repair services; on-site services; preparation for drilling operations; well coordination and supply services based on the drilling programs; and integrated solutions for the subsea line pipe market comprising welding, coating, insulation, bending, logistics, project management, and service agreements. In addition, the company offers tubular products for geothermal; carbon capture, utilization, and storage; and hydrogen industries. Further, it provides tubes and hollow bars, as well as circular, square, rectangular, and octagonal sections for the manufacture of cranes, construction machinery, agricultural machinery, and hydraulic cylinders; and infrastructure construction, as well as axle tubes and gearbox applications for the automotive industry. Additionally, the company is involved in the iron ore and charcoal production businesses. It serves oil service, engineering, and construction companies; distributors and industrial equipment manufacturers; and energy companies, and carbon capture and storage specialists, as well as geothermal, green hydrogen, and solar developers. Vallourec S.A. was founded in 1895 and is based in Meudon, France.
About Pan American Silver
Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.
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