Sigma Lithium (NASDAQ:SGML – 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 compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Volatility & Risk
Sigma Lithium has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500.
Earnings and Valuation
This table compares Sigma Lithium and Triple Flag Precious Metals”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sigma Lithium | $110.01 million | 8.53 | -$50.19 million | ($0.24) | -34.73 |
| Triple Flag Precious Metals | $388.70 million | 16.12 | $240.01 million | $1.99 | 15.28 |
Triple Flag Precious Metals has higher revenue and earnings than Sigma Lithium. Sigma Lithium 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 Recommendations
This is a summary of recent ratings for Sigma Lithium and Triple Flag Precious Metals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sigma Lithium | 3 | 1 | 3 | 0 | 2.00 |
| Triple Flag Precious Metals | 0 | 4 | 6 | 0 | 2.60 |
Sigma Lithium currently has a consensus target price of $15.38, suggesting a potential upside of 84.46%. Triple Flag Precious Metals has a consensus target price of $39.25, suggesting a potential upside of 29.07%. Given Sigma Lithium’s higher probable upside, research analysts clearly believe Sigma Lithium is more favorable than Triple Flag Precious Metals.
Profitability
This table compares Sigma Lithium and Triple Flag Precious Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sigma Lithium | -19.36% | -37.40% | -7.66% |
| Triple Flag Precious Metals | 84.32% | 14.09% | 13.64% |
Institutional & Insider Ownership
64.9% of Sigma Lithium shares are owned by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are owned by institutional investors. 48.6% of Sigma Lithium shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Triple Flag Precious Metals beats Sigma Lithium on 11 of the 14 factors compared between the two stocks.
About Sigma Lithium
Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.
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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