Critical Survey: Hecla Mining (NYSE:HL) & Triple Flag Precious Metals (NYSE:TFPM)

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

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Triple Flag Precious Metals pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Hecla Mining pays out 2.0% of its earnings in the form of a dividend. Triple Flag Precious Metals pays out 12.1% 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. Triple Flag Precious Metals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Hecla Mining has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hecla Mining	20.84%	18.91%	14.58%
Triple Flag Precious Metals	84.32%	14.09%	13.64%

Earnings & Valuation

This table compares Hecla Mining and Triple Flag Precious Metals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hecla Mining	$1.42 billion	7.73	$321.71 million	$0.49	33.43
Triple Flag Precious Metals	$388.70 million	15.96	$240.01 million	$1.99	15.14

Hecla Mining has higher revenue and earnings than Triple Flag Precious Metals. Triple Flag Precious Metals is trading at a lower price-to-earnings ratio than Hecla Mining, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Hecla Mining and Triple Flag Precious Metals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hecla Mining	1	6	3	0	2.20
Triple Flag Precious Metals	0	4	6	0	2.60

Hecla Mining currently has a consensus price target of $23.34, suggesting a potential upside of 42.50%. Triple Flag Precious Metals has a consensus price target of $39.25, suggesting a potential upside of 30.31%. Given Hecla Mining’s higher possible upside, analysts plainly believe Hecla Mining is more favorable than Triple Flag Precious Metals.

Institutional & Insider Ownership

63.0% of Hecla Mining shares are held by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are held by institutional investors. 0.7% of Hecla Mining shares are held by company 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.

Summary

Hecla Mining beats Triple Flag Precious Metals on 9 of the 17 factors compared between the two stocks.

About Hecla Mining

Hecla Mining Company, together with its subsidiaries, provides precious and base metal properties in the United States, Canada, Japan, Korea, and China. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for custom smelters, metal traders, and third-party processors; and doré containing silver and gold. It flagship project is the Greens Creek mine located on Admiralty Island in southeast Alaska. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.

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.