Aurora vs Wheaton Precious Metals Which Outperforms?

Aurora Cannabis and Wheaton Precious Metals are two prominent companies in the stock market that have garnered attention from investors. While Aurora is a major player in the cannabis industry, Wheaton Precious Metals focuses on mining and distributing precious metals. Both companies have seen fluctuations in their stock prices in recent years, with Aurora experiencing significant growth and volatility, while Wheaton Precious Metals has provided a stable investment option. Investors looking to diversify their portfolio may consider these two stocks for potential growth and stability.

Aurora or Wheaton Precious Metals?

When comparing Aurora and Wheaton Precious Metals, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aurora and Wheaton Precious Metals.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aurora has a dividend yield of 6.17%, while Wheaton Precious Metals has a dividend yield of 1.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 102.72%. On the other hand, Wheaton Precious Metals reports a 5-year dividend growth of 10.76% year and a payout ratio of 45.58%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aurora P/E ratio at 14.91 and Wheaton Precious Metals's P/E ratio at 45.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aurora P/B ratio is 2.00 while Wheaton Precious Metals's P/B ratio is 3.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aurora has seen a 5-year revenue growth of -0.20%, while Wheaton Precious Metals's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aurora's ROE at 14.00% and Wheaton Precious Metals's ROE at 8.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$66.30 for Aurora and $61.55 for Wheaton Precious Metals. Over the past year, Aurora's prices ranged from NT$66.20 to NT$77.00, with a yearly change of 16.31%. Wheaton Precious Metals's prices fluctuated between $38.57 and $68.64, with a yearly change of 77.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.