BHP vs. RIO, GLEN, AAL, CRH, S32, ADT1, KMR, GFM, SOLG, and JLP
Should you be buying BHP Group stock or one of its competitors? The main competitors of BHP Group include Rio Tinto Group (RIO), Glencore (GLEN), Anglo American (AAL), CRH (CRH), South32 (S32), Adriatic Metals (ADT1), Kenmare Resources (KMR), Griffin Mining (GFM), SolGold (SOLG), and Jubilee Metals Group (JLP). These companies are all part of the "basic materials" sector.
BHP Group (LON:BHP) and Rio Tinto Group (LON:RIO) are both large-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, community ranking, media sentiment, valuation, institutional ownership, profitability, analyst recommendations and dividends.
BHP Group has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Rio Tinto Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.
Rio Tinto Group has a net margin of 18.61% compared to BHP Group's net margin of 13.28%. BHP Group's return on equity of 19.33% beat Rio Tinto Group's return on equity.
Rio Tinto Group received 2009 more outperform votes than BHP Group when rated by MarketBeat users. Likewise, 70.36% of users gave Rio Tinto Group an outperform vote while only 40.00% of users gave BHP Group an outperform vote.
In the previous week, BHP Group had 5 more articles in the media than Rio Tinto Group. MarketBeat recorded 8 mentions for BHP Group and 3 mentions for Rio Tinto Group. Rio Tinto Group's average media sentiment score of 0.09 beat BHP Group's score of -0.24 indicating that Rio Tinto Group is being referred to more favorably in the news media.
Rio Tinto Group has lower revenue, but higher earnings than BHP Group. Rio Tinto Group is trading at a lower price-to-earnings ratio than BHP Group, indicating that it is currently the more affordable of the two stocks.
BHP Group pays an annual dividend of GBX 120 per share and has a dividend yield of 5.0%. Rio Tinto Group pays an annual dividend of GBX 341 per share and has a dividend yield of 5.9%. BHP Group pays out 10,434.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rio Tinto Group pays out 7,002.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rio Tinto Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
47.3% of BHP Group shares are owned by institutional investors. Comparatively, 47.5% of Rio Tinto Group shares are owned by institutional investors. 3.8% of BHP Group shares are owned by company insiders. Comparatively, 14.7% of Rio Tinto Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
BHP Group presently has a consensus target price of GBX 2,367.50, indicating a potential downside of 1.35%. Rio Tinto Group has a consensus target price of GBX 6,301.25, indicating a potential upside of 8.92%. Given Rio Tinto Group's stronger consensus rating and higher possible upside, analysts clearly believe Rio Tinto Group is more favorable than BHP Group.
Summary
Rio Tinto Group beats BHP Group on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BHP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of LON and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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