Canopy Growth vs Wheaton Precious Metals Which Is a Better Investment?

Canopy Growth and Wheaton Precious Metals are two prominent companies in the stock market with vastly different focuses. Canopy Growth is a leading cannabis producer, known for its innovative products and strategic partnerships. Wheaton Precious Metals, on the other hand, is a major player in the precious metals industry, specializing in streaming and royalty agreements. Both stocks offer unique investment opportunities in rapidly growing sectors, but investors should carefully consider the risks and potential rewards associated with each.

Canopy Growth or Wheaton Precious Metals?

When comparing Canopy Growth 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 Canopy Growth 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. Canopy Growth has a dividend yield of -%, while Wheaton Precious Metals has a dividend yield of 1.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canopy Growth reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Canopy Growth P/E ratio at -0.69 and Wheaton Precious Metals's P/E ratio at 45.70. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canopy Growth P/B ratio is 0.77 while Wheaton Precious Metals's P/B ratio is 3.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canopy Growth has seen a 5-year revenue growth of 3.36%, while Wheaton Precious Metals's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canopy Growth's ROE at -108.18% 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 $3.11 for Canopy Growth and $61.31 for Wheaton Precious Metals. Over the past year, Canopy Growth's prices ranged from $2.75 to $14.92, with a yearly change of 441.56%. 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.