Vale (VALE) Competitors

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

Is VALE or BHP more profitable?

Vale has a net margin of 14.23% compared to BHP Group's net margin of 0.00%. Vale's return on equity of 18.14% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Vale	14.23%	18.14%	7.99%
BHP Group	N/A	N/A	N/A

Does the media prefer VALE or BHP?

In the previous week, Vale had 4 more articles in the media than BHP Group. MarketBeat recorded 15 mentions for Vale and 11 mentions for BHP Group. Vale's average media sentiment score of 1.18 beat BHP Group's score of 0.72 indicating that Vale is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vale	9 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
BHP Group	7 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate VALE or BHP?

Vale presently has a consensus target price of $11.84, suggesting a potential upside of 19.52%. BHP Group has a consensus target price of $48.50, suggesting a potential downside of 10.38%. Given Vale's stronger consensus rating and higher probable upside, equities research 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)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50
BHP Group	1 Sell rating(s)	5 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.14

Is VALE or BHP a better dividend stock?

Vale pays an annual dividend of $0.72 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 3.6%. Vale pays out 58.5% 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.

Which has more volatility and risk, VALE or BHP?

Vale has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Which has preferable 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	$36.60B	1.23	$6.17B	$1.23	8.06
BHP Group	$53.60B	2.56	$7.90B	$4.40	12.30

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

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

Summary

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