Critical Comparison: Barrick Mining (NYSE:B) & Triple Flag Precious Metals (NYSE:TFPM)

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

Dividends

Barrick Mining pays an annual dividend of $1.68 per share and has a dividend yield of 4.1%. Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.7%. Barrick Mining pays out 46.4% of its earnings in the form of a dividend. Triple Flag Precious Metals pays out 15.2% 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 increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

90.8% of Barrick Mining shares are held by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are held by institutional investors. 5.2% of Barrick Mining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Barrick Mining and Triple Flag Precious Metals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barrick Mining	$16.96 billion	4.01	$4.99 billion	$3.62	11.21
Triple Flag Precious Metals	$388.70 million	17.00	$240.01 million	$1.51	21.18

Barrick Mining has higher revenue and earnings than Triple Flag Precious Metals. Barrick Mining 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.

Analyst Ratings

This is a summary of current ratings for Barrick Mining and Triple Flag Precious Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barrick Mining	0	4	16	1	2.86
Triple Flag Precious Metals	0	5	5	0	2.50

Barrick Mining currently has a consensus price target of $54.50, indicating a potential upside of 34.25%. Triple Flag Precious Metals has a consensus price target of $34.33, indicating a potential upside of 7.36%. Given Barrick Mining’s stronger consensus rating and higher possible upside, equities analysts plainly believe Barrick Mining is more favorable than Triple Flag Precious Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Barrick Mining	32.14%	14.81%	10.38%
Triple Flag Precious Metals	68.68%	12.90%	12.52%

Volatility and Risk

Barrick Mining has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500.

Summary

Barrick Mining beats Triple Flag Precious Metals on 12 of the 18 factors compared between the two stocks.

About Barrick Mining

Barrick Gold Corporation is a sector-leading gold and copper producer.  Its shares trade on the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX.
 
In January 2019 Barrick merged with Randgold Resources and in July that year it combined its gold mines in Nevada, USA, with those of Newmont Corporation in a joint venture, Nevada Gold Mines, which is majority-owned and operated by Barrick. Nevada Gold Mines is the world’s largest gold mining complex.  Barrick owns and operates six Tier One gold mines:  Cortez, Carlin and Turquoise Ridge in Nevada, Loulo-Gounkoto in Mali, Kibali in the Democratic Republic of Congo and Pueblo Viejo in the Dominican Republic.
 
It has gold and copper mines and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia. Barrick’s diversified portfolio spans the world’s most prolific gold districts and is focused on high-margin, long life assets.

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.