Triple Flag Precious Metals (NYSE:TFPM) versus U.S. GoldMining (NASDAQ:USGO) Financial Analysis

Triple Flag Precious Metals (NYSE:TFPM) and U.S. GoldMining (NASDAQ:USGO) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Triple Flag Precious Metals has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500. Comparatively, U.S. GoldMining has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Triple Flag Precious Metals and U.S. GoldMining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	4	6	2	2.83
U.S. GoldMining	1	0	1	0	2.00

Triple Flag Precious Metals presently has a consensus target price of $27.25, suggesting a potential downside of 1.88%. U.S. GoldMining has a consensus target price of $26.50, suggesting a potential upside of 129.44%. Given U.S. GoldMining’s higher possible upside, analysts clearly believe U.S. GoldMining is more favorable than Triple Flag Precious Metals.

Earnings & Valuation

This table compares Triple Flag Precious Metals and U.S. GoldMining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triple Flag Precious Metals	$268.99 million	21.33	-$23.08 million	$0.86	32.29
U.S. GoldMining	N/A	N/A	-$8.48 million	($0.66)	-17.50

U.S. GoldMining has lower revenue, but higher earnings than Triple Flag Precious Metals. U.S. GoldMining 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.

Profitability

This table compares Triple Flag Precious Metals and U.S. GoldMining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Triple Flag Precious Metals	53.11%	8.81%	8.60%
U.S. GoldMining	N/A	-196.04%	-163.85%

Insider and Institutional Ownership

82.9% of Triple Flag Precious Metals shares are held by institutional investors. Comparatively, 0.5% of U.S. GoldMining shares are held by institutional investors. 2.5% of U.S. GoldMining shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Triple Flag Precious Metals beats U.S. GoldMining on 10 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 U.S. GoldMining

U.S. GoldMining Inc., an exploration stage company, engages in the exploration and development of mineral properties in the United States. The company's primary asset is the 100%-owned Whistler exploration property, a gold-copper exploration project comprising mining claims totaling 53,700 acres located in Yentna Mining District, Alaska. The company was incorporated in 2015 and is based in Vancouver, Canada. U.S. GoldMining Inc. operates as a subsidiary of GoldMining Inc.