Agnico Eagle Mines (NYSE:AEM) and Metalla Royalty & Streaming (NYSE:MTA) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Agnico Eagle Mines pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Metalla Royalty & Streaming pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Agnico Eagle Mines pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Metalla Royalty & Streaming pays out -7.7% of its earnings in the form of a dividend. Agnico Eagle Mines has increased its dividend for 1 consecutive years. Agnico Eagle Mines is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Agnico Eagle Mines and Metalla Royalty & Streaming’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Agnico Eagle Mines||$2.49 billion||8.34||$473.17 million||$0.97||88.51|
|Metalla Royalty & Streaming||$2.70 million||117.55||-$4.87 million||($0.13)||-65.08|
Agnico Eagle Mines has higher revenue and earnings than Metalla Royalty & Streaming. Metalla Royalty & Streaming is trading at a lower price-to-earnings ratio than Agnico Eagle Mines, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
59.4% of Agnico Eagle Mines shares are held by institutional investors. Comparatively, 12.0% of Metalla Royalty & Streaming shares are held by institutional investors. 0.5% of Agnico Eagle Mines shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Agnico Eagle Mines and Metalla Royalty & Streaming’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Agnico Eagle Mines||18.46%||5.46%||3.07%|
|Metalla Royalty & Streaming||N/A||N/A||N/A|
This is a breakdown of recent ratings and target prices for Agnico Eagle Mines and Metalla Royalty & Streaming, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Agnico Eagle Mines||0||1||8||1||3.00|
|Metalla Royalty & Streaming||0||0||1||0||3.00|
Agnico Eagle Mines currently has a consensus target price of $80.78, indicating a potential downside of 5.91%. Metalla Royalty & Streaming has a consensus target price of $9.00, indicating a potential upside of 6.38%. Given Metalla Royalty & Streaming’s higher possible upside, analysts clearly believe Metalla Royalty & Streaming is more favorable than Agnico Eagle Mines.
Agnico Eagle Mines beats Metalla Royalty & Streaming on 13 of the 16 factors compared between the two stocks.
Agnico Eagle Mines Company Profile
Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. The company operates through Northern Business and Southern Business segments. It primarily produces and sells gold deposit, as well as explores for silver, zinc, and copper deposits. The company's flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2018, its LaRonde mine had a proven and probable mineral reserve of approximately 3.1 million ounces of gold. The company is also involved in exploration activities in Europe, Latin America, and the United States. Agnico Eagle Mines Limited was founded in 1953 and is headquartered in Toronto, Canada.
Metalla Royalty & Streaming Company Profile
Metalla Royalty & Streaming Ltd., a precious metals royalty and streaming company, engages in the acquisition and management of precious metal royalties, streams, and related production-based interests in Canada and Australia. The company was formerly known as Excalibur Resources Ltd. and changed its name to Metalla Royalty & Streaming Ltd. in December 2016. Metalla Royalty & Streaming Ltd. was incorporated in 1983 and is headquartered in Vancouver, Canada.
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