BHP Group (BHP) Competitors

BHP Group (NYSE:BHP) and Vale (NYSE:VALE) are both large-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, media sentiment, dividends, risk, valuation, earnings and institutional ownership.

Which has more risk & volatility, BHP or VALE?

BHP Group has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Vale has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Is BHP or VALE more profitable?

Vale has a net margin of 15.54% compared to BHP Group's net margin of 0.00%. Vale's return on equity of 17.65% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
BHP Group	N/A	N/A	N/A
Vale	15.54%	17.65%	7.76%

Is BHP or VALE a better dividend stock?

BHP Group pays an annual dividend of $1.97 per share and has a dividend yield of 3.7%. Vale pays an annual dividend of $0.75 per share and has a dividend yield of 7.5%. BHP Group pays out 44.8% of its earnings in the form of a dividend. Vale pays out 54.3% 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.

Does the media favor BHP or VALE?

In the previous week, BHP Group had 5 more articles in the media than Vale. MarketBeat recorded 14 mentions for BHP Group and 9 mentions for Vale. Vale's average media sentiment score of 0.78 beat BHP Group's score of 0.70 indicating that Vale is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
BHP Group	7 Very Positive mention(s)	3 Positive mention(s)	1 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Vale	5 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings and valuation, BHP or VALE?

BHP Group has higher revenue and earnings than Vale. Vale 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	$55.66B	2.42	$7.90B	$4.40	12.08
Vale	$38.06B	1.19	$6.17B	$1.38	7.24

Do insiders and institutionals hold more shares of BHP or VALE?

3.8% of BHP Group shares are held by institutional investors. Comparatively, 21.9% of Vale shares are held by institutional investors. 0.0% of BHP Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Do analysts prefer BHP or VALE?

BHP Group presently has a consensus target price of $48.50, suggesting a potential downside of 8.78%. Vale has a consensus target price of $11.73, suggesting a potential upside of 17.39%. Given Vale's stronger consensus rating and higher possible upside, analysts plainly believe Vale is more favorable than BHP Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.17
Vale	0 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50

Summary

BHP Group beats Vale on 10 of the 19 factors compared between the two stocks.