Vale (VALE) Competitors

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

Which has more risk and volatility, VALE or BHP?

Vale has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.8, suggesting that its share price is 20% 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 7.3%. BHP Group pays an annual dividend of $1.97 per share and has a dividend yield of 3.9%. 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.

Is VALE or BHP 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
Vale	15.54%	17.65%	7.76%
BHP Group	N/A	N/A	N/A

Which has higher valuation and earnings, VALE or BHP?

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
Vale	$37.72B	1.23	$6.17B	$1.38	7.43
BHP Group	$55.66B	2.30	$7.90B	$4.40	11.46

Do analysts prefer VALE or BHP?

Vale currently has a consensus target price of $11.79, suggesting a potential upside of 15.01%. BHP Group has a consensus target price of $53.00, suggesting a potential upside of 5.12%. Given Vale's higher probable upside, equities research analysts plainly 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)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50
BHP Group	0 Sell rating(s)	3 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.50

Do insiders and institutionals hold more shares of 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 will outperform the market over the long term.

Does the media refer more to VALE or BHP?

In the previous week, BHP Group had 1 more articles in the media than Vale. MarketBeat recorded 10 mentions for BHP Group and 9 mentions for Vale. Vale's average media sentiment score of 0.95 beat BHP Group's score of 0.89 indicating that Vale is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vale	6 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
BHP Group	7 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

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