Contrasting Kaiser Aluminum (NASDAQ:KALU) and Triple Flag Precious Metals (NYSE:TFPM)

Triple Flag Precious Metals (NYSE:TFPM) and Kaiser Aluminum (NASDAQ:KALU) are both mid-cap materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Dividends

Triple Flag Precious Metals pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 2.1%. Triple Flag Precious Metals pays out 12.1% of its earnings in the form of a dividend. Kaiser Aluminum 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.

Profitability

This table compares Triple Flag Precious Metals and Kaiser Aluminum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Triple Flag Precious Metals	84.32%	14.09%	13.64%
Kaiser Aluminum	5.49%	24.71%	7.86%

Volatility and Risk

Triple Flag Precious Metals has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Kaiser Aluminum has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Triple Flag Precious Metals and Kaiser Aluminum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triple Flag Precious Metals	0	4	5	0	2.56
Kaiser Aluminum	1	2	4	0	2.43

Triple Flag Precious Metals currently has a consensus price target of $39.25, indicating a potential upside of 28.35%. Kaiser Aluminum has a consensus price target of $169.40, indicating a potential upside of 12.78%. Given Triple Flag Precious Metals’ stronger consensus rating and higher possible upside, equities analysts plainly believe Triple Flag Precious Metals is more favorable than Kaiser Aluminum.

Institutional and Insider Ownership

82.9% of Triple Flag Precious Metals shares are owned by institutional investors. Comparatively, 99.3% of Kaiser Aluminum shares are owned by institutional investors. 1.3% of Kaiser Aluminum shares are owned 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.

Valuation & Earnings

This table compares Triple Flag Precious Metals and Kaiser Aluminum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triple Flag Precious Metals	$388.70 million	16.18	$240.01 million	$1.99	15.37
Kaiser Aluminum	$4.14 billion	0.59	$112.50 million	$13.49	11.13

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

Summary

Triple Flag Precious Metals beats Kaiser Aluminum on 10 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 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.