Nouveau Monde Graphite (NYSE:NMG) vs. Wheaton Precious Metals (NYSE:WPM) Critical Review

Nouveau Monde Graphite (NYSE:NMG) and Wheaton Precious Metals (NYSE:WPM) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Nouveau Monde Graphite and Wheaton Precious Metals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nouveau Monde Graphite	1	1	3	2	2.86
Wheaton Precious Metals	0	1	12	0	2.92

Nouveau Monde Graphite presently has a consensus price target of $4.67, indicating a potential upside of 254.88%. Wheaton Precious Metals has a consensus price target of $165.55, indicating a potential upside of 51.40%. Given Nouveau Monde Graphite’s higher possible upside, equities research analysts plainly believe Nouveau Monde Graphite is more favorable than Wheaton Precious Metals.

Volatility and Risk

Nouveau Monde Graphite has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Wheaton Precious Metals has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

41.1% of Nouveau Monde Graphite shares are owned by institutional investors. Comparatively, 70.3% of Wheaton Precious Metals shares are owned by institutional investors. 22.7% of Nouveau Monde Graphite shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Nouveau Monde Graphite and Wheaton Precious Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nouveau Monde Graphite	N/A	-40.86%	-19.95%
Wheaton Precious Metals	65.55%	20.20%	19.28%

Earnings & Valuation

This table compares Nouveau Monde Graphite and Wheaton Precious Metals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nouveau Monde Graphite	N/A	N/A	-$75.28 million	($0.45)	-2.92
Wheaton Precious Metals	$2.31 billion	21.45	$1.47 billion	$3.96	27.61

Wheaton Precious Metals has higher revenue and earnings than Nouveau Monde Graphite. Nouveau Monde Graphite is trading at a lower price-to-earnings ratio than Wheaton Precious Metals, indicating that it is currently the more affordable of the two stocks.

Summary

Wheaton Precious Metals beats Nouveau Monde Graphite on 10 of the 14 factors compared between the two stocks.

About Nouveau Monde Graphite

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores for graphite. The company’s flagship property is the 100% owned Matawinie graphite property including 176 mining claims covering an area of 9,264 hectares located in Quebec. It also involved in the real estate and trading activities. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-Des-Saints, Canada.

About Wheaton Precious Metals

Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.