Largo (NYSE:LGO – Get Free Report) and Triple Flag Precious Metals (NYSE:TFPM – Get Free Report) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility & Risk
Largo has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Triple Flag Precious Metals has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500.
Earnings and Valuation
This table compares Largo 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 | |
| Largo | $127.06 million | 0.35 | -$30.34 million | ($1.07) | -0.36 |
| Triple Flag Precious Metals | $388.70 million | 15.35 | $240.01 million | $1.99 | 14.57 |
Triple Flag Precious Metals has higher revenue and earnings than Largo. Largo 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.
Analyst Ratings
This is a summary of recent recommendations and price targets for Largo and Triple Flag Precious Metals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Largo | 0 | 0 | 2 | 0 | 3.00 |
| Triple Flag Precious Metals | 0 | 4 | 5 | 0 | 2.56 |
Largo presently has a consensus target price of $2.10, suggesting a potential upside of 446.73%. Triple Flag Precious Metals has a consensus target price of $39.25, suggesting a potential upside of 35.34%. Given Largo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Largo is more favorable than Triple Flag Precious Metals.
Profitability
This table compares Largo and Triple Flag Precious Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Largo | -35.10% | -22.61% | -14.29% |
| Triple Flag Precious Metals | 84.32% | 14.09% | 13.64% |
Insider and Institutional Ownership
64.1% of Largo shares are held by institutional investors. Comparatively, 82.9% of Triple Flag Precious Metals shares are held by institutional investors. 0.3% of Largo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Triple Flag Precious Metals beats Largo on 10 of the 14 factors compared between the two stocks.
About Largo
Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and 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.
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