BHP Group (BHP) Competitors

Vale (NYSE:VALE) and BHP Group (NYSE:BHP) 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 community ranking, analyst recommendations, dividends, media sentiment, profitability, valuation, earnings, institutional ownership and risk.

Which has more risk and volatility, VALE or BHP?

Vale has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Is VALE or BHP a better dividend stock?

Vale pays an annual dividend of $0.75 per share and has a dividend yield of 8.1%. BHP Group pays an annual dividend of $1.97 per share and has a dividend yield of 4.1%. Vale pays out 54.3% of its earnings in the form of a dividend. BHP Group pays out 44.8% 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.

Do analysts rate VALE or BHP?

Vale currently has a consensus target price of $12.13, suggesting a potential upside of 31.08%. BHP Group has a consensus target price of $53.00, suggesting a potential upside of 11.00%. Given Vale's higher possible upside, analysts clearly believe Vale is more favorable than BHP Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vale	0 Sell rating(s)	6 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.40
BHP Group	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	2 Strong Buy rating(s)	3.00

Does the media prefer VALE or BHP?

In the previous week, Vale had 16 more articles in the media than BHP Group. MarketBeat recorded 23 mentions for Vale and 7 mentions for BHP Group. BHP Group's average media sentiment score of 0.90 beat Vale's score of 0.86 indicating that BHP Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vale	15 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive
BHP Group	4 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher valuation and earnings, VALE or BHP?

Vale has higher earnings, but lower revenue than BHP Group. 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
Vale	$38.06B	1.10	$7.98B	$1.38	6.71
BHP Group	$53.60B	2.26	$7.90B	$4.40	10.85

Does the MarketBeat Community believe in VALE or BHP?

BHP Group received 84 more outperform votes than Vale when rated by MarketBeat users. Likewise, 66.21% of users gave BHP Group an outperform vote while only 60.78% of users gave Vale an outperform vote.

Company	Underperform	Outperform
Vale	Outperform Votes 792 60.78%	Underperform Votes 511 39.22%
BHP Group	Outperform Votes 876 66.21%	Underperform Votes 447 33.79%

Is VALE or BHP more profitable?

Vale has a net margin of 16.15% compared to BHP Group's net margin of 0.00%. Vale's return on equity of 17.38% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Vale	16.15%	17.38%	7.62%
BHP Group	N/A	N/A	N/A

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

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

Summary

BHP Group beats Vale on 12 of the 21 factors compared between the two stocks.