Head to Head Review: Triple Flag Precious Metals (NYSE:TFPM) and Franco-Nevada (NYSE:FNV)

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

Dividends

Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Franco-Nevada pays an annual dividend of $1.76 per share and has a dividend yield of 0.7%. Triple Flag Precious Metals pays out 19.5% of its earnings in the form of a dividend. Franco-Nevada pays out 30.6% 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 and Franco-Nevada has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

82.9% of Triple Flag Precious Metals shares are owned by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are owned by institutional investors. 0.7% of Franco-Nevada shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triple Flag Precious Metals	$388.70 million	19.37	$240.01 million	$1.18	30.88
Franco-Nevada	$1.82 billion	27.79	$1.11 billion	$5.76	45.61

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Triple Flag Precious Metals and Franco-Nevada, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	5	6	1	2.67
Franco-Nevada	0	7	7	0	2.50

Triple Flag Precious Metals presently has a consensus price target of $32.25, indicating a potential downside of 11.48%. Franco-Nevada has a consensus price target of $257.25, indicating a potential downside of 2.08%. Given Franco-Nevada’s higher possible upside, analysts clearly believe Franco-Nevada is more favorable than Triple Flag Precious Metals.

Risk & Volatility

Triple Flag Precious Metals has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Triple Flag Precious Metals	61.74%	10.82%	10.53%
Franco-Nevada	61.01%	15.62%	14.61%

Summary

Franco-Nevada beats Triple Flag Precious Metals on 12 of the 17 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 Franco-Nevada

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.