Rio Tinto Group (RIO) Competitors

BHP Group (LON:BHP) and Rio Tinto Group (LON:RIO) are both large-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, media sentiment, dividends, profitability and analyst recommendations.

Which has more volatility & risk, BHP or RIO?

BHP Group has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Rio Tinto Group has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Which has stronger valuation and earnings, BHP or RIO?

Rio Tinto Group has higher revenue and 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	£51.26B	1.97	£9.92B	£1.77	1,118.66
Rio Tinto Group	£53.73B	1.40	£13.82B	£6.28	737.62

Does the media prefer BHP or RIO?

In the previous week, Rio Tinto Group had 3 more articles in the media than BHP Group. MarketBeat recorded 3 mentions for Rio Tinto Group and 0 mentions for BHP Group. Rio Tinto Group's average media sentiment score of 0.54 beat BHP Group's score of -0.44 indicating that Rio Tinto Group is being referred to more favorably in the news media.

Company	Overall Sentiment
BHP Group	Neutral
Rio Tinto Group	Positive

Do analysts rate BHP or RIO?

BHP Group currently has a consensus price target of GBX 1,920, indicating a potential downside of 3.25%. Rio Tinto Group has a consensus price target of GBX 5,325, indicating a potential upside of 14.97%. Given Rio Tinto Group's stronger consensus rating and higher probable upside, analysts plainly believe Rio Tinto Group is more favorable than BHP Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.67
Rio Tinto Group	0 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33

Is BHP or RIO a better dividend stock?

BHP Group pays an annual dividend of GBX 1.25 per share and has a dividend yield of 0.1%. Rio Tinto Group pays an annual dividend of GBX 3.98 per share and has a dividend yield of 0.1%. BHP Group pays out 70.2% of its earnings in the form of a dividend. Rio Tinto Group pays out 63.4% 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. Rio Tinto Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do institutionals and insiders believe in BHP or RIO?

35.0% of BHP Group shares are held by institutional investors. Comparatively, 41.5% of Rio Tinto Group shares are held by institutional investors. 0.1% of BHP Group shares are held by insiders. Comparatively, 0.1% of Rio Tinto Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Is BHP or RIO more profitable?

Rio Tinto Group has a net margin of 19.84% compared to BHP Group's net margin of 14.09%. Rio Tinto Group's return on equity of 19.57% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
BHP Group	14.09%	18.32%	13.98%
Rio Tinto Group	19.84%	19.57%	9.23%

Summary

Rio Tinto Group beats BHP Group on 14 of the 18 factors compared between the two stocks.