Cleveland-Cliffs (NYSE:CLF – Get Free Report) and Triple Flag Precious Metals (NYSE:TFPM – Get Free Report) are both mid-cap materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Volatility and Risk
Cleveland-Cliffs has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cleveland-Cliffs 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 | |
| Cleveland-Cliffs | $18.61 billion | 0.35 | -$1.48 billion | ($0.85) | -13.50 |
| Triple Flag Precious Metals | $388.70 million | 16.67 | $240.01 million | $2.00 | 15.75 |
Triple Flag Precious Metals has lower revenue, but higher earnings than Cleveland-Cliffs. Cleveland-Cliffs 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.
Institutional & Insider Ownership
67.7% of Cleveland-Cliffs shares are held by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are held by institutional investors. 0.9% of Cleveland-Cliffs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings for Cleveland-Cliffs and Triple Flag Precious Metals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cleveland-Cliffs | 2 | 7 | 3 | 0 | 2.08 |
| Triple Flag Precious Metals | 0 | 4 | 5 | 0 | 2.56 |
Cleveland-Cliffs presently has a consensus target price of $14.18, indicating a potential upside of 23.55%. Triple Flag Precious Metals has a consensus target price of $39.25, indicating a potential upside of 24.58%. Given Triple Flag Precious Metals’ stronger consensus rating and higher probable upside, analysts clearly believe Triple Flag Precious Metals is more favorable than Cleveland-Cliffs.
Profitability
This table compares Cleveland-Cliffs and Triple Flag Precious Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cleveland-Cliffs | -2.36% | -6.83% | -2.05% |
| Triple Flag Precious Metals | 84.32% | 14.09% | 13.64% |
Summary
Triple Flag Precious Metals beats Cleveland-Cliffs on 11 of the 14 factors compared between the two stocks.
About Cleveland-Cliffs
Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.
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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