Kaiser Aluminum (NASDAQ:KALU – Get Free Report) and Triple Flag Precious Metals (NYSE:TFPM – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
Kaiser Aluminum has a beta of 1.59, suggesting that its share price is 59% 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.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Kaiser Aluminum and Triple Flag Precious Metals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kaiser Aluminum | 1 | 2 | 4 | 0 | 2.43 |
| Triple Flag Precious Metals | 0 | 4 | 5 | 0 | 2.56 |
Earnings & Valuation
This table compares Kaiser Aluminum and Triple Flag Precious Metals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kaiser Aluminum | $3.37 billion | 0.52 | $112.50 million | $13.49 | 7.95 |
| Triple Flag Precious Metals | $388.70 million | 15.25 | $240.01 million | $1.99 | 14.48 |
Triple Flag Precious Metals has lower revenue, but higher earnings than Kaiser Aluminum. Kaiser Aluminum 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.
Dividends
Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 2.9%. Triple Flag Precious Metals pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Kaiser Aluminum pays out 22.8% 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 raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
99.3% of Kaiser Aluminum shares are held by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are held by institutional investors. 1.3% of Kaiser Aluminum shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Kaiser Aluminum and Triple Flag Precious Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kaiser Aluminum | 4.85% | 23.65% | 7.66% |
| Triple Flag Precious Metals | 84.32% | 14.09% | 13.64% |
Summary
Triple Flag Precious Metals beats Kaiser Aluminum on 9 of the 17 factors compared between the two stocks.
About Kaiser Aluminum
Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company's automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company's general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.
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.
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