Contrasting Hecla Mining (NYSE:HL) & Triple Flag Precious Metals (NYSE:TFPM)

Hecla Mining (NYSE:HL – Get Free Report) and Triple Flag Precious Metals (NYSE:TFPM – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Hecla Mining and Triple Flag Precious Metals”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hecla Mining $1.42 billion 7.63 $321.71 million $0.49 32.99
Triple Flag Precious Metals $388.70 million 16.30 $240.01 million $1.99 15.48

Hecla Mining has higher revenue and earnings than Triple Flag Precious Metals. Triple Flag Precious Metals is trading at a lower price-to-earnings ratio than Hecla Mining, indicating that it is currently the more affordable of the two stocks.

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Triple Flag Precious Metals pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Hecla Mining pays out 2.0% of its earnings in the form of a dividend. Triple Flag Precious Metals pays out 12.1% 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. Triple Flag Precious Metals has raised its dividend for 2 consecutive years. Triple Flag Precious Metals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Hecla Mining has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hecla Mining and Triple Flag Precious Metals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hecla Mining 1 5 4 0 2.30
Triple Flag Precious Metals 0 4 5 0 2.56

Hecla Mining presently has a consensus target price of $23.34, suggesting a potential upside of 44.41%. Triple Flag Precious Metals has a consensus target price of $39.25, suggesting a potential upside of 27.39%. Given Hecla Mining’s higher possible upside, equities analysts clearly believe Hecla Mining is more favorable than Triple Flag Precious Metals.

Insider & Institutional Ownership

63.0% of Hecla Mining shares are owned by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are owned by institutional investors. 0.7% of Hecla Mining shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hecla Mining and Triple Flag Precious Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hecla Mining 20.84% 18.91% 14.58%
Triple Flag Precious Metals 84.32% 14.09% 13.64%

Summary

Hecla Mining beats Triple Flag Precious Metals on 9 of the 17 factors compared between the two stocks.

About Hecla Mining

(Get Free Report)

Hecla Mining Company, together with its subsidiaries, provides precious and base metal properties in the United States, Canada, Japan, Korea, and China. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for custom smelters, metal traders, and third-party processors; and doré containing silver and gold. It flagship project is the Greens Creek mine located on Admiralty Island in southeast Alaska. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.

About Triple Flag Precious Metals

(Get Free Report)

Triple Flag Precious Metals Corp., a precious-metals-focused streaming and royalty company, engages in acquiring and managing precious metals, streams, royalties and other mineral interests in Australia, Canada, Colombia, Cote d'Ivoire, Honduras, Mexico, Mongolia, Peru, South Africa, the United States, and internationally. The company has a portfolio of streams and royalties providing exposure to gold, silver, nickel, copper, zinc, and lead. It holds a royalty interest in the Beta Hunt mine located in Pert, Wester Australia; the Camino Rojo gold and silver mine located in Mexico; the El Mochito polymetallic mine located in north-western Honduras; and La Colorada polymetallic mine located in Mexico. Triple Flag Precious Metals Corp. was founded in 2016 and is based in Toronto, Canada.

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