Financial Comparison: Triple Flag Precious Metals (NYSE:TFPM) and Royal Gold (NASDAQ:RGLD)

Triple Flag Precious Metals (NYSE:TFPM – Get Rating) and Royal Gold (NASDAQ:RGLD – Get Rating) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Triple Flag Precious Metals and Royal Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	1	3	0	2.75
Royal Gold	0	5	4	0	2.44

Triple Flag Precious Metals currently has a consensus target price of $23.08, indicating a potential upside of 69.61%. Royal Gold has a consensus target price of $141.63, indicating a potential upside of 14.37%. Given Triple Flag Precious Metals’ stronger consensus rating and higher probable upside, equities analysts clearly believe Triple Flag Precious Metals is more favorable than Royal Gold.

Earnings & Valuation

This table compares Triple Flag Precious Metals and Royal Gold’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triple Flag Precious Metals	$151.88 million	13.95	$55.09 million	N/A	N/A
Royal Gold	$611.24 million	13.29	$238.98 million	$3.61	34.30

Royal Gold has higher revenue and earnings than Triple Flag Precious Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Triple Flag Precious Metals	N/A	N/A	N/A
Royal Gold	38.80%	8.18%	6.76%

Dividends

Triple Flag Precious Metals pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Royal Gold pays an annual dividend of $1.50 per share and has a dividend yield of 1.2%. Royal Gold pays out 41.6% of its earnings in the form of a dividend. Royal Gold has increased its dividend for 21 consecutive years.

Insider and Institutional Ownership

87.3% of Triple Flag Precious Metals shares are held by institutional investors. Comparatively, 78.1% of Royal Gold shares are held by institutional investors. 0.4% of Royal Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Royal Gold beats Triple Flag Precious Metals on 8 of the 14 factors compared between the two stocks.

About Triple Flag Precious Metals

(Get Rating)

Triple Flag Precious Metals Corp., a gold-focused streaming and royalty company, engages in acquiring and managing precious metals and other streams and royalties in Australia, Canada, Colombia, Mongolia, Peru, South Africa, and the United States. The company has a portfolio of streams and royalties providing exposure primarily to gold and silver. It has 78 assets, including 9 streams and 69 royalties. The company was founded in 2016 and is headquartered in Toronto, Canada. Triple Flag Precious Metals Corp. operates as a subsidiary of Triple Flag Mining Elliott and Management Co-Invest LP.

About Royal Gold

(Get Rating)

Royal Gold, Inc. engages in the acquisition and management of precious metal streams, royalties, and similar interests. It operates through the Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests segments. The Acquisition and Management of Stream Interests segment focuses on metal streams, which are purchase agreements that provide, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced, at a price determined for the life of the transaction. The Acquisition and Management of Royalty Interests segment refers to the non-operating interests in mining projects that provide the right to revenue or metals produced from the project. The company was founded by Stanley Dempsey on January 5, 1981 and is headquartered in Denver, CO.