Pan American Silver (NASDAQ:PAAS – Get Rating) and Platinum Group Metals (NYSE:PLG – Get Rating) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
45.2% of Pan American Silver shares are held by institutional investors. Comparatively, 12.8% of Platinum Group Metals shares are held by institutional investors. 12.9% of Pan American Silver shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
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Earnings & Valuation
This table compares Pan American Silver and Platinum Group Metals' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Pan American Silver | $1.63 billion | 2.02 | $97.43 million | ($0.31) | -50.42 |
| Platinum Group Metals | N/A | N/A | -$13.06 million | ($0.14) | -11.36 |
Pan American Silver has higher revenue and earnings than Platinum Group Metals. Pan American Silver is trading at a lower price-to-earnings ratio than Platinum Group Metals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pan American Silver and Platinum Group Metals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Pan American Silver | -3.76% | 3.95% | 2.98% |
| Platinum Group Metals | N/A | -30.02% | -21.44% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Pan American Silver and Platinum Group Metals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Pan American Silver | 0 | 0 | 6 | 0 | 3.00 |
| Platinum Group Metals | 0 | 0 | 0 | 0 | N/A |
Pan American Silver presently has a consensus target price of $32.17, suggesting a potential upside of 105.80%. Given Pan American Silver's higher possible upside, equities analysts clearly believe Pan American Silver is more favorable than Platinum Group Metals.
Volatility and Risk
Pan American Silver has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Platinum Group Metals has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.
Summary
Pan American Silver beats Platinum Group Metals on 8 of the 12 factors compared between the two stocks.
About Pan American Silver
(Get Rating)
Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. 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.
About Platinum Group Metals
(Get Rating)
Platinum Group Metals Ltd. engages in the exploration and development of platinum and palladium properties. It explores for palladium, platinum, gold, copper, nickel, and rhodium deposits. The company holds 50.02% interest in the Waterberg project located on the Northern Limb of the Western Bushveld complex, South Africa. It also develops next-generation battery technology using platinum and palladium. Platinum Group Metals Ltd. was incorporated in 2000 and is headquartered in Vancouver, Canada.
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