Rio Tinto Group (RIO) Competitors

Rio Tinto Group (LON:RIO) and BHP Group (LON:BHP) are both large-cap basic 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, valuation and media sentiment.

Does the media refer more to RIO or BHP?

In the previous week, BHP Group had 12 more articles in the media than Rio Tinto Group. MarketBeat recorded 14 mentions for BHP Group and 2 mentions for Rio Tinto Group. BHP Group's average media sentiment score of 0.35 beat Rio Tinto Group's score of 0.34 indicating that BHP Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Rio Tinto Group	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
BHP Group	2 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is RIO or BHP a better dividend stock?

Rio Tinto Group pays an annual dividend of GBX 338 per share and has a dividend yield of 7.3%. BHP Group pays an annual dividend of GBX 113 per share and has a dividend yield of 5.5%. Rio Tinto Group pays out 64.0% of its earnings in the form of a dividend. BHP Group pays out 91.5% 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.

Do analysts recommend RIO or BHP?

Rio Tinto Group presently has a consensus target price of GBX 5,325, indicating a potential upside of 15.74%. BHP Group has a consensus target price of GBX 1,920, indicating a potential downside of 6.66%. Given Rio Tinto Group's stronger consensus rating and higher probable upside, equities analysts plainly believe Rio Tinto Group is more favorable than BHP Group.

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

Which has more risk & volatility, RIO or BHP?

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

Do institutionals & insiders have more ownership in RIO or BHP?

48.0% of Rio Tinto Group shares are owned by institutional investors. Comparatively, 48.2% of BHP Group shares are owned by institutional investors. 14.6% of Rio Tinto Group shares are owned by insiders. Comparatively, 3.6% of BHP Group shares are owned 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.

Is RIO or BHP 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
Rio Tinto Group	19.84%	19.57%	9.23%
BHP Group	14.09%	18.32%	13.98%

Which has stronger earnings & valuation, RIO or BHP?

Rio Tinto Group has higher earnings, but lower revenue 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
Rio Tinto Group	£69.64B	1.39	£13.82B	£528.17	8.71
BHP Group	£70.41B	1.86	£9.92B	£123.55	16.65

Summary

Rio Tinto Group beats BHP Group on 10 of the 18 factors compared between the two stocks.