Voestalpine (OTCMKTS:VLPNY – Get Free Report) and Pan American Silver (NYSE:PAAS – Get Free Report) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Volatility and Risk
Voestalpine has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Pan American Silver has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
Dividends
Voestalpine pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. Pan American Silver pays an annual dividend of $0.74 per share and has a dividend yield of 1.6%. Voestalpine pays out 12.9% of its earnings in the form of a dividend. Pan American Silver pays out 22.4% 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. Pan American Silver has raised its dividend for 2 consecutive years. Pan American Silver is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Voestalpine | $17.47 billion | 0.49 | $492.57 million | $0.70 | 14.24 |
| Pan American Silver | $3.62 billion | 5.21 | $978.00 million | $3.31 | 13.76 |
Pan American Silver has lower revenue, but higher earnings than Voestalpine. Pan American Silver is trading at a lower price-to-earnings ratio than Voestalpine, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
55.4% of Pan American Silver shares are owned by institutional investors. 12.9% of Pan American Silver shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Voestalpine and Pan American Silver’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Voestalpine | 3.39% | 6.66% | 3.30% |
| Pan American Silver | 32.04% | 20.01% | 14.48% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Voestalpine and Pan American Silver, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Voestalpine | 1 | 2 | 3 | 0 | 2.33 |
| Pan American Silver | 0 | 3 | 7 | 0 | 2.70 |
Pan American Silver has a consensus target price of $67.71, indicating a potential upside of 48.70%. Given Pan American Silver’s stronger consensus rating and higher possible upside, analysts plainly believe Pan American Silver is more favorable than Voestalpine.
Summary
Pan American Silver beats Voestalpine on 13 of the 17 factors compared between the two stocks.
About Voestalpine
Voestalpine AG processes, develops, manufactures, and sells steel products in Austria, European Union, and internationally. The company operates through five segments: Steel, High Performance Metals, Metal Engineering, Metal Forming, and Other. The Steel division produces hot and cold-rolled steel strips, as well as electrogalvanized, hot-dip galvanized, and organically coated steel strips; and heavy plates for the energy sector, as well as turbine casings for automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The High Performance Metals segment offers special alloys for the oil and natural gas, aerospace, and energy engineering industries; tool manufacturing, component processing, heat treatment, and coating services; and warehousing and preprocessing of special steels, as well as services, including logistics, distribution, and processing for the oil and natural gas industries for automotive, white goods/consumer goods, building/construction, aerospace, mechanical engineering, and others. The Metal Engineering division offers rails and turnout products, rod and drawn wires, seamless tubes, and welding consumables and machinery; rails and digital monitoring systems; and services for rail infrastructure. This segment serves railway systems, automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The Metal Forming division manufactures special tubes and sections, and precision strip steel products, as well as pre-finished system components made from pressed, stamped, and roll-profiled parts for use in automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The company is headquartered in Linz, Austria.
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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