Critical Review: Pan American Silver (NASDAQ: PAAS) vs. Gold Fields (GFI)

Gold Fields (NYSE: GFI) and Pan American Silver (NASDAQ: PAAS) are both mid-cap core materials companies, but what is the best company? We will compare the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, badyst recommendations and risk.

Valuation and Profits

This table compares income, earnings per share (EPS) and the valuation of Gold Fields and Pan American Silver

Pan American Silver has lower incomes, but higher incomes than Gold Fields. Gold Fields is trading at a price / earnings ratio lower than that of Pan American Silver, indicating that it is currently the most affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on badets of Gold Fields and Pan American Silver

] Analyst Recommendations

This is a breakdown of current ratings and recommendations for Gold Fields and Pan American Silver, as provided by MarketBeat.com.

Gold Fields currently has a consensual target price of 5, $ 66, indicating a potential upside of 54.51%. Pan American Silver has a consensus target price of $ 21.28, indicating a potential upside of 30.14%. Given the likely rise in Gold Fields, badysts clearly believe that Gold Fields is more favorable than Pan American Silver

Insider & Institutional Ownership

33.4% of Gold Fields shares are held by institutional investors. In comparison, 49.6% of Pan American Silver's shares are held by institutional investors. 12.9% of Pan American Silver shares are held by insiders of the company. Strong institutional participation indicates that endowments, hedge funds and large fund managers believe that one stock will outperform the market over the long term.

Dividends

Gold Fields pays an annual dividend of $ 0.07 per share and has a dividend yield of 1.9%. Pan American Silver pays an annual dividend of $ 0.14 per share and a dividend yield of 0.9%. Gold Fields pays 29.2% of its earnings as a dividend. Pan American Silver distributes 27.5% of its earnings in the form of a dividend. Both companies have sound distribution ratios and should be able to cover their dividend payments with profits for the next few years. Gold Fields has increased its dividend for 2 consecutive years. Gold Fields is clearly the best dividend stock, given its higher yield and dividend growth history.

Volatility & Risk

Gold Fields has a beta of -0.89, which means its price is 189% less volatile than Comparatively, Pan American Silver has a beta of 0.3, which means its price is 70% less volatile than the S & P 500.

Abstract

Pan American Silver defeats Gold Fields on 13 of 17 factors compared

Gold Fields Company Profile

Pan American Silver Company Profile

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