Better Buy: Alcoa Inc. vs. Wheaton Precious Metals
It's hard to compare an aluminum producer like Alcoa Inc. (NYSE: AA) to a precious metals company like Wheaton Precious Metals (NYSE: WPM) as the commodities they sell are inherently different. However, that doesn't mean the comparison doesn't turn up an interesting and important difference in their business models. If you are trying to determine if Alcoa or Wheaton Precious Metals is the better buy, focus in on costs.
Alcoa is one of the largest pure-play aluminum producers in the world, with operations across the aluminum value chain, including bauxite, alumina, and aluminum. The aluminum business includes aluminum sheet and cast products, as well, both of which add at least a little value to the aluminum it produces.
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Source: Fool.com
