Reviewing Eldorado Gold (NYSE:EGO) & Triple Flag Precious Metals (NYSE:TFPM)

Triple Flag Precious Metals (NYSE:TFPM) and Eldorado Gold (NYSE:EGO) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk & Volatility

Triple Flag Precious Metals has a beta of -0.28, meaning that its stock price is 128% less volatile than the S&P 500. Comparatively, Eldorado Gold has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Insider and Institutional Ownership

82.9% of Triple Flag Precious Metals shares are owned by institutional investors. Comparatively, 69.6% of Eldorado Gold shares are owned by institutional investors. 0.6% of Eldorado Gold 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.

Dividends

Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Eldorado Gold pays an annual dividend of $0.30 per share and has a dividend yield of 0.7%. Triple Flag Precious Metals pays out 19.5% of its earnings in the form of a dividend. Eldorado Gold 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. Eldorado Gold is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Triple Flag Precious Metals and Eldorado Gold”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triple Flag Precious Metals	$388.70 million	20.59	$240.01 million	$1.18	32.83
Eldorado Gold	$1.82 billion	4.58	$507.26 million	$2.48	16.91

Eldorado Gold has higher revenue and earnings than Triple Flag Precious Metals. Eldorado Gold 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 Eldorado Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Triple Flag Precious Metals	61.74%	10.82%	10.53%
Eldorado Gold	27.89%	8.63%	5.57%

Analyst Recommendations

This is a breakdown of recent recommendations for Triple Flag Precious Metals and Eldorado Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	5	6	1	2.67
Eldorado Gold	1	5	3	1	2.40

Triple Flag Precious Metals currently has a consensus target price of $32.25, suggesting a potential downside of 16.75%. Eldorado Gold has a consensus target price of $43.71, suggesting a potential upside of 4.23%. Given Eldorado Gold’s higher possible upside, analysts clearly believe Eldorado Gold is more favorable than Triple Flag Precious Metals.

Summary

Triple Flag Precious Metals beats Eldorado Gold on 9 of the 17 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 Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.