Triple Flag Precious Metals (NYSE:TFPM – Get Free Report) and U.S. GoldMining (NASDAQ:USGO – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.
Volatility & Risk
Triple Flag Precious Metals has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500.
Profitability
This table compares Triple Flag Precious Metals and U.S. GoldMining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Triple Flag Precious Metals | 53.11% | 8.81% | 8.60% |
| U.S. GoldMining | N/A | -196.04% | -163.85% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Triple Flag Precious Metals | $268.99 million | 21.73 | -$23.08 million | $0.86 | 32.91 |
| U.S. GoldMining | N/A | N/A | -$8.48 million | ($0.66) | -17.65 |
U.S. GoldMining has lower revenue, but higher earnings than Triple Flag Precious Metals. U.S. GoldMining 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.
Insider & Institutional Ownership
82.9% of Triple Flag Precious Metals shares are held by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are held by institutional investors. 2.5% of U.S. GoldMining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Triple Flag Precious Metals and U.S. GoldMining, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Triple Flag Precious Metals | 0 | 4 | 6 | 2 | 2.83 |
| U.S. GoldMining | 1 | 0 | 1 | 0 | 2.00 |
Triple Flag Precious Metals presently has a consensus price target of $27.25, indicating a potential downside of 3.72%. U.S. GoldMining has a consensus price target of $26.50, indicating a potential upside of 127.47%. Given U.S. GoldMining’s higher probable upside, analysts clearly believe U.S. GoldMining is more favorable than Triple Flag Precious Metals.
Summary
Triple Flag Precious Metals beats U.S. GoldMining on 10 of the 14 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 U.S. GoldMining
U.S. GoldMining Inc., an exploration stage company, engages in the exploration and development of mineral properties in the United States. The company's primary asset is the 100%-owned Whistler exploration property, a gold-copper exploration project comprising mining claims totaling 53,700 acres located in Yentna Mining District, Alaska. The company was incorporated in 2015 and is based in Vancouver, Canada. U.S. GoldMining Inc. operates as a subsidiary of GoldMining Inc.
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