Eldorado Gold (NYSE:EGO – Get Free Report) and Triple Flag Precious Metals (NYSE:TFPM – Get Free Report) are both mid-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.
Dividends
Eldorado Gold pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. Triple Flag Precious Metals pays an annual dividend of $0.23 per share and has a dividend yield of 0.6%. Eldorado Gold pays out 12.1% of its earnings in the form of a dividend. Triple Flag Precious Metals pays out 19.5% 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.
Risk & Volatility
Eldorado Gold has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.28, indicating that its stock price is 128% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eldorado Gold | 1 | 5 | 3 | 0 | 2.22 |
| Triple Flag Precious Metals | 0 | 5 | 6 | 1 | 2.67 |
Eldorado Gold currently has a consensus price target of $43.71, indicating a potential downside of 6.03%. Triple Flag Precious Metals has a consensus price target of $32.25, indicating a potential downside of 21.88%. Given Eldorado Gold’s higher probable upside, analysts clearly believe Eldorado Gold is more favorable than Triple Flag Precious Metals.
Valuation and Earnings
This table compares Eldorado Gold 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 | |
| Eldorado Gold | $1.82 billion | 5.08 | $507.26 million | $2.48 | 18.76 |
| Triple Flag Precious Metals | $388.70 million | 21.94 | $240.01 million | $1.18 | 34.98 |
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.
Insider & Institutional Ownership
69.6% of Eldorado Gold shares are owned by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are owned by institutional investors. 0.6% of Eldorado Gold shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Eldorado Gold and Triple Flag Precious Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eldorado Gold | 27.89% | 8.63% | 5.57% |
| Triple Flag Precious Metals | 61.74% | 10.82% | 10.53% |
Summary
Triple Flag Precious Metals beats Eldorado Gold on 10 of the 18 factors compared between the two stocks.
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.
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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