Contrasting Sigma Lithium (NASDAQ:SGML) and Triple Flag Precious Metals (NYSE:TFPM)

Triple Flag Precious Metals (NYSE:TFPM) and Sigma Lithium (NASDAQ:SGML) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	4	6	0	2.60
Sigma Lithium	3	1	3	0	2.00

Triple Flag Precious Metals currently has a consensus target price of $39.25, suggesting a potential upside of 29.07%. Sigma Lithium has a consensus target price of $15.38, suggesting a potential upside of 84.46%. Given Sigma Lithium’s higher possible upside, analysts plainly believe Sigma Lithium is more favorable than Triple Flag Precious Metals.

Insider and Institutional Ownership

82.9% of Triple Flag Precious Metals shares are held by institutional investors. Comparatively, 64.9% of Sigma Lithium shares are held by institutional investors. 48.6% of Sigma Lithium shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Triple Flag Precious Metals and Sigma Lithium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triple Flag Precious Metals	$388.70 million	16.12	$240.01 million	$1.99	15.28
Sigma Lithium	$110.01 million	8.53	-$50.19 million	($0.24)	-34.73

Triple Flag Precious Metals has higher revenue and earnings than Sigma Lithium. Sigma Lithium 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.

Risk & Volatility

Triple Flag Precious Metals has a beta of -0.15, meaning that its stock price is 115% less volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Triple Flag Precious Metals	84.32%	14.09%	13.64%
Sigma Lithium	-19.36%	-37.40%	-7.66%

Summary

Triple Flag Precious Metals beats Sigma Lithium on 11 of the 14 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 Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.