OR Royalties (NYSE:OR) & Pan American Silver (NYSE:PAAS) Head-To-Head Analysis

Pan American Silver (NYSE:PAAS) and OR Royalties (NYSE:OR) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Dividends

Pan American Silver pays an annual dividend of $0.74 per share and has a dividend yield of 1.7%. OR Royalties pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. Pan American Silver pays out 19.8% of its earnings in the form of a dividend. OR Royalties pays out 16.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Pan American Silver has raised its dividend for 2 consecutive years and OR Royalties has raised its dividend for 1 consecutive years. Pan American Silver is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Pan American Silver and OR Royalties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pan American Silver	35.18%	21.05%	15.22%
OR Royalties	78.04%	16.41%	14.51%

Insider & Institutional Ownership

55.4% of Pan American Silver shares are held by institutional investors. Comparatively, 68.5% of OR Royalties shares are held by institutional investors. 12.9% of Pan American Silver shares are held 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.

Earnings and Valuation

This table compares Pan American Silver and OR Royalties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pan American Silver	$3.62 billion	4.83	$978.00 million	$3.73	11.36
OR Royalties	$277.37 million	25.38	$206.09 million	$1.50	25.18

Pan American Silver has higher revenue and earnings than OR Royalties. Pan American Silver is trading at a lower price-to-earnings ratio than OR Royalties, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Pan American Silver has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Pan American Silver and OR Royalties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pan American Silver	0	5	5	0	2.50
OR Royalties	0	4	3	0	2.43

Pan American Silver currently has a consensus price target of $67.71, suggesting a potential upside of 59.79%. OR Royalties has a consensus price target of $41.00, suggesting a potential upside of 8.56%. Given Pan American Silver’s stronger consensus rating and higher possible upside, research analysts clearly believe Pan American Silver is more favorable than OR Royalties.

Summary

Pan American Silver beats OR Royalties on 11 of the 16 factors compared between the two stocks.

About Pan American Silver

Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. 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 OR Royalties

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.