First Majestic Silver vs Pan American Silver Which Is More Attractive?

First Majestic Silver and Pan American Silver are both prominent players in the silver mining industry, each with their own unique strengths and characteristics. First Majestic Silver focuses primarily on silver production, with a strong presence in Mexico and a commitment to sustainability and environmental responsibility. On the other hand, Pan American Silver is a larger company with diversified operations across the Americas, producing not only silver but also gold, zinc, and lead. Both companies offer investors exposure to the precious metals market, but their approaches and portfolios differ significantly.

First Majestic Silver or Pan American Silver?

When comparing First Majestic Silver and Pan American Silver, 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 First Majestic Silver and Pan American Silver.

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. First Majestic Silver has a dividend yield of 0.3%, while Pan American Silver has a dividend yield of 1.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. First Majestic Silver reports a 5-year dividend growth of 0.00% year and a payout ratio of -6.65%. On the other hand, Pan American Silver reports a 5-year dividend growth of 23.36% year and a payout ratio of -310.48%.

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 First Majestic Silver P/E ratio at -23.24 and Pan American Silver's P/E ratio at -171.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. First Majestic Silver P/B ratio is 1.32 while Pan American Silver's P/B ratio is 1.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, First Majestic Silver has seen a 5-year revenue growth of 0.22%, while Pan American Silver's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Majestic Silver's ROE at -5.74% and Pan American Silver's ROE at -1.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.96 for First Majestic Silver and $21.98 for Pan American Silver. Over the past year, First Majestic Silver's prices ranged from $4.17 to $8.44, with a yearly change of 102.40%. Pan American Silver's prices fluctuated between $12.16 and $26.05, with a yearly change of 114.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.