Tahoe Resources (NYSE: TAHO) and Goldcorp (NYSE:GG) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Earnings & Valuation
This table compares Tahoe Resources and Goldcorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tahoe Resources||$733.60 million||2.06||$81.79 million||$0.27||17.85|
|Goldcorp||$3.42 billion||3.44||$658.00 million||$0.40||33.85|
Goldcorp has higher revenue and earnings than Tahoe Resources. Tahoe Resources is trading at a lower price-to-earnings ratio than Goldcorp, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Tahoe Resources and Goldcorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Goldcorp has a consensus price target of $17.89, indicating a potential upside of 32.14%. Given Goldcorp’s stronger consensus rating and higher possible upside, analysts clearly believe Goldcorp is more favorable than Tahoe Resources.
Volatility & Risk
Tahoe Resources has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Goldcorp has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.
Insider and Institutional Ownership
61.9% of Tahoe Resources shares are owned by institutional investors. Comparatively, 51.8% of Goldcorp shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Goldcorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Tahoe Resources does not pay a dividend. Goldcorp pays out 20.0% of its earnings in the form of a dividend. Goldcorp has raised its dividend for 5 consecutive years.
This table compares Tahoe Resources and Goldcorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Goldcorp beats Tahoe Resources on 14 of the 17 factors compared between the two stocks.
About Tahoe Resources
Tahoe Resources Inc., together with its subsidiaries, acquires, explores for, develops, and operates mineral properties in the Americas. It explores for silver, gold, lead, zinc, and copper deposits, as well as precious metals assets. The company holds interest in the La Arena gold mine located in the Huamachuco district of northern Peru; Shahuindo mine located in the province of Cajabamba in northern Peru; and La Arena II, a copper-gold porphyry deposit located in Peru. It also holds interest in the Timmins mines, including the Bell Creek and Timmins West mines, the Fenn-Gib project, the Juby project, the Vogel project, and the Gold River project located in Timmins, Ontario. The company was formerly known as CKM Resources Inc. and changed its name to Tahoe Resources Inc. in January 2010. Tahoe Resources Inc. was incorporated in 2009 and is headquartered in Reno, Nevada.
Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. It primarily explores for gold, silver, lead, zinc, and copper deposits. The company's principal producing mining properties include the Éléonore, Musselwhite, Porcupine, and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine in the Dominican Republic. Goldcorp Inc. was founded in 1954 and is headquartered in Vancouver, Canada.
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