Critical Survey: Triple Flag Precious Metals (NYSE:TFPM) and Jaguar Mining (OTCMKTS:JAGGF)

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

Dividends

Jaguar Mining pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.7%. Jaguar Mining pays out -15.8% of its earnings in the form of a dividend. Triple Flag Precious Metals pays out 22.8% 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.

Institutional and Insider Ownership

82.9% of Triple Flag Precious Metals shares are owned by institutional investors. 0.6% of Jaguar Mining shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Jaguar Mining 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
Jaguar Mining	$158.63 million	3.13	-$1.29 million	($0.19)	-30.63
Triple Flag Precious Metals	$268.99 million	26.94	-$23.08 million	$1.01	34.73

Jaguar Mining has higher earnings, but lower revenue than Triple Flag Precious Metals. Jaguar 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.

Risk and Volatility

Jaguar Mining has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	-10.83%	3.72%	2.55%
Triple Flag Precious Metals	59.43%	9.56%	9.34%

Analyst Ratings

This is a breakdown of recent ratings for Jaguar Mining and Triple Flag Precious Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
Triple Flag Precious Metals	0	5	6	1	2.67

Triple Flag Precious Metals has a consensus target price of $30.00, suggesting a potential downside of 14.49%. Given Triple Flag Precious Metals’ stronger consensus rating and higher possible upside, analysts plainly believe Triple Flag Precious Metals is more favorable than Jaguar Mining.

Summary

Triple Flag Precious Metals beats Jaguar Mining on 14 of the 18 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining Inc., a junior gold mining company, engages in the acquisition, exploration, development, and operation of gold mineral properties in Brazil. The company's principal assets include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex with mineral claims covering an area of approximately 56,000 hectares located in the Iron Quadrangle in the state of Minas Gerais. It also owns the Paciência Gold Mine complex. Jaguar Mining Inc. is headquartered in Toronto, Canada.

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.