Newmont Corporation (NEM) vs Wheaton Precious Metals Corp. (WPM)

Newmont Corporation and Wheaton Precious Metals Corp. are both Gold companies. Newmont Corporation is the larger, with a market value of $127.5B against $65.4B — 1.9× the size. Newmont Corporation trades at the lower P/E: 15.3× against 31.6×. Wheaton Precious Metals Corp. grew revenue faster over the last twelve months: 90.8% against 25.2%. Wheaton Precious Metals Corp. has the higher net margin (64.7% vs 33.4%) and the lower return on invested capital (12.5% vs 25.9%). Both pay a dividend; Newmont Corporation yields more (5.15% vs 1.30%). Across the 22 metrics below, Newmont Corporation leads on 13 and Wheaton Precious Metals Corp. on 9.

Valuation

Metric NEM WPM Gold median
P/E 15.29 31.62 23.34
P/S 5.02 20.46 5.02
P/B 3.65 6.70 3.53
Price to free cash flow 12.97 n/m 16.73
EV/EBITDA 8.04 25.14 8.34
EV/Sales 4.92 21.05 4.92
Earnings yield 6.54% 3.16% 1.44%
Free cash flow yield 7.71% (4.49%) 0.75%

Profitability

Metric NEM WPM Gold median
Gross margin 68.94% 75.25% 50.00%
Operating margin 51.25% 72.62% 26.32%
Net margin 33.36% 64.66% 12.30%
Free cash flow margin 38.69% (91.92%) 0.00%
Return on equity 25.40% 23.55% 6.36%
Return on assets 15.24% 20.36% 0.00%
Return on invested capital 25.90% 12.45% 0.52%

Growth

Metric NEM WPM Gold median
Revenue growth (TTM) 25.18% 90.79% 68.15%
EPS growth (last fiscal year) 118.84% 176.92% —
Revenue growth, 5-year CAGR 14.54% 16.12% 16.12%
Net income growth, 5-year CAGR 20.15% 23.72% 0.00%

Health

Metric NEM WPM Gold median
Debt to equity 0.15 0.20 0.10
Current ratio 2.55 0.47 3.08
Net debt to EBITDA (0.21) (0.61) 0.00

Dividend

Metric NEM WPM Gold median
Dividend yield 5.15% 1.30% 1.49%
Payout ratio 1.80 0.44 0.00

Size

Metric NEM WPM Gold median
Market cap 127.49b 65.40b 1.96b

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