Triple Flag Precious Metals (NYSE:TFPM) versus Newmont (NYSE:NEM) Head-To-Head Comparison

Triple Flag Precious Metals (NYSE:TFPM) and Newmont (NYSE:NEM) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations for Triple Flag Precious Metals and Newmont, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	1	4	6	1	2.58
Newmont	0	3	12	6	3.14

Triple Flag Precious Metals presently has a consensus price target of $30.00, suggesting a potential downside of 20.07%. Newmont has a consensus price target of $99.49, suggesting a potential downside of 16.31%. Given Newmont’s stronger consensus rating and higher possible upside, analysts plainly believe Newmont is more favorable than Triple Flag Precious Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Triple Flag Precious Metals	59.43%	9.56%	9.34%
Newmont	33.42%	20.35%	11.68%

Dividends

Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. Triple Flag Precious Metals pays out 22.8% of its earnings in the form of a dividend. Newmont pays out 15.5% 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 increased its dividend for 2 consecutive years. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Triple Flag Precious Metals has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500. Comparatively, Newmont has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Institutional and Insider Ownership

82.9% of Triple Flag Precious Metals shares are owned by institutional investors. Comparatively, 68.9% of Newmont shares are owned by institutional investors. 0.1% of Newmont shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Triple Flag Precious Metals and Newmont”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triple Flag Precious Metals	$268.99 million	28.82	-$23.08 million	$1.01	37.16
Newmont	$18.68 billion	6.94	$3.35 billion	$6.44	18.46

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

Summary

Newmont beats Triple Flag Precious Metals on 13 of the 18 factors compared between the two stocks.

About Triple Flag Precious Metals

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.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.