Newmont (NYSE:NEM) versus Triple Flag Precious Metals (NYSE:TFPM) Head-To-Head Survey

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

Analyst Ratings

This is a summary of current recommendations and price targets for Newmont and Triple Flag Precious Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmont	0	4	13	5	3.05
Triple Flag Precious Metals	1	4	6	1	2.58

Newmont presently has a consensus target price of $99.35, suggesting a potential downside of 12.98%. Triple Flag Precious Metals has a consensus target price of $30.00, suggesting a potential downside of 17.66%. Given Newmont’s stronger consensus rating and higher probable upside, analysts plainly believe Newmont is more favorable than Triple Flag Precious Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Newmont	33.42%	20.35%	11.68%
Triple Flag Precious Metals	59.43%	9.56%	9.34%

Valuation & Earnings

This table compares Newmont and Triple Flag Precious Metals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmont	$21.50 billion	5.79	$3.35 billion	$6.44	17.73
Triple Flag Precious Metals	$268.99 million	27.98	-$23.08 million	$1.01	36.07

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

Dividends

Newmont pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Newmont pays out 15.5% 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 increased its dividend for 2 consecutive years. Newmont is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Newmont has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500.

Institutional and Insider Ownership

68.8% of Newmont shares are owned by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are owned by institutional investors. 0.1% of Newmont shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Newmont beats Triple Flag Precious Metals on 13 of the 18 factors compared between the two stocks.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.

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.