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

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

Profitability

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

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

Dividends

Royal Gold pays an annual dividend of $1.50 per share and has a dividend yield of 1.2%. Triple Flag Precious Metals pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. 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.

Institutional & Insider Ownership

78.1% of Royal Gold shares are held by institutional investors. Comparatively, 87.3% of Triple Flag Precious Metals shares are held by institutional investors. 0.4% of Royal Gold 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.

Valuation and Earnings

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

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

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Royal Gold and Triple Flag Precious Metals, as provided by MarketBeat.

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

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

Summary

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

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.

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.