Analyzing Triple Flag Precious Metals (NYSE:TFPM) and Barrick Mining (NYSE:B)

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

Profitability

This table compares Triple Flag Precious Metals and Barrick Mining’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%
Barrick Mining	29.45%	12.10%	8.47%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Triple Flag Precious Metals and Barrick Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	5	6	1	2.67
Barrick Mining	0	4	16	1	2.86

Triple Flag Precious Metals presently has a consensus target price of $32.25, indicating a potential downside of 10.75%. Barrick Mining has a consensus target price of $54.83, indicating a potential upside of 27.71%. Given Barrick Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Barrick Mining is more favorable than Triple Flag Precious Metals.

Institutional and Insider Ownership

82.9% of Triple Flag Precious Metals shares are owned by institutional investors. Comparatively, 90.8% of Barrick Mining shares are owned by institutional investors. 0.6% of Barrick Mining shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

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, Barrick Mining has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Dividends

Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Barrick Mining pays an annual dividend of $1.68 per share and has a dividend yield of 3.9%. Triple Flag Precious Metals pays out 19.5% of its earnings in the form of a dividend. Barrick Mining pays out 57.3% 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.

Earnings & Valuation

This table compares Triple Flag Precious Metals and Barrick Mining”s 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	19.21	$240.01 million	$1.18	30.62
Barrick Mining	$16.96 billion	4.24	$4.99 billion	$2.93	14.65

Barrick Mining has higher revenue and earnings than Triple Flag Precious Metals. Barrick Mining 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

Barrick Mining beats Triple Flag Precious Metals on 11 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 Barrick Mining

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
 
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex.  Barrick owns and operates six Tier One gold mines:  Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
 
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.