Critical Contrast: Triple Flag Precious Metals (NYSE:TFPM) & Iamgold (NYSE:IAG)

Iamgold (NYSE:IAGGet Free Report) and Triple Flag Precious Metals (NYSE:TFPMGet Free Report) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Iamgold and Triple Flag Precious Metals”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iamgold $2.23 billion 3.94 $819.60 million $0.60 25.49
Triple Flag Precious Metals $268.99 million 24.95 -$23.08 million $1.01 32.17

Iamgold has higher revenue and earnings than Triple Flag Precious Metals. Iamgold 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iamgold 0 3 5 3 3.00
Triple Flag Precious Metals 0 4 6 2 2.83

Iamgold currently has a consensus price target of $15.25, suggesting a potential downside of 0.29%. Triple Flag Precious Metals has a consensus price target of $30.00, suggesting a potential downside of 7.67%. Given Iamgold’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Iamgold is more favorable than Triple Flag Precious Metals.

Profitability

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

Net Margins Return on Equity Return on Assets
Iamgold 40.61% 8.54% 5.37%
Triple Flag Precious Metals 59.43% 9.56% 9.34%

Institutional & Insider Ownership

47.1% of Iamgold shares are held by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are held by institutional investors. 0.2% of Iamgold shares are held 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.

Volatility & Risk

Iamgold has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500.

Dividends

Iamgold pays an annual dividend of $0.25 per share and has a dividend yield of 1.6%. Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.7%. Iamgold pays out 41.7% of its earnings in the form of a dividend. Triple Flag Precious Metals pays out 22.8% 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.

Summary

Triple Flag Precious Metals beats Iamgold on 10 of the 18 factors compared between the two stocks.

About Iamgold

(Get Free Report)

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

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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