Head-To-Head Analysis: Kinross Gold (NYSE:KGC) versus Triple Flag Precious Metals (NYSE:TFPM)

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

Institutional & Insider Ownership

82.9% of Triple Flag Precious Metals shares are held by institutional investors. Comparatively, 63.7% of Kinross Gold shares are held by institutional investors. 1.0% of Kinross Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Triple Flag Precious Metals and Kinross Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	4	6	2	2.83
Kinross Gold	0	3	10	1	2.86

Triple Flag Precious Metals currently has a consensus price target of $32.25, indicating a potential downside of 1.79%. Kinross Gold has a consensus price target of $38.81, indicating a potential upside of 35.79%. Given Kinross Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Kinross Gold is more favorable than Triple Flag Precious Metals.

Profitability

This table compares Triple Flag Precious Metals and Kinross Gold’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%
Kinross Gold	33.90%	28.22%	19.11%

Earnings & Valuation

This table compares Triple Flag Precious Metals and Kinross Gold”s gross 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	17.45	$240.01 million	$1.18	27.83
Kinross Gold	$7.05 billion	4.85	$2.39 billion	$1.96	14.58

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

Volatility and Risk

Triple Flag Precious Metals has a beta of -0.28, indicating that its stock price is 128% less volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.73, indicating that its stock price is 27% 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 0.7%. Kinross Gold pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Triple Flag Precious Metals pays out 19.5% of its earnings in the form of a dividend. Kinross Gold pays out 8.2% 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 raised its dividend for 2 consecutive years. Triple Flag Precious Metals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Kinross Gold beats Triple Flag Precious Metals on 11 of the 18 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 Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.