Critical Analysis: BHP Billiton (NYSE:BBL) & BHP Billiton (BHP)

BHP Billiton (NYSE: BBL) and BHP Billiton (NYSE:BHP) are both large-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Valuation & Earnings

This table compares BHP Billiton and BHP Billiton’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BHP Billiton $38.29 billion 1.19 $5.89 billion $2.21 19.56
BHP Billiton $38.29 billion 2.05 $5.89 billion $2.21 22.11

BHP Billiton is trading at a lower price-to-earnings ratio than BHP Billiton, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BHP Billiton has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, BHP Billiton has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Dividends

BHP Billiton pays an annual dividend of $1.66 per share and has a dividend yield of 3.8%. BHP Billiton pays an annual dividend of $1.72 per share and has a dividend yield of 3.5%. BHP Billiton pays out 75.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BHP Billiton pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BHP Billiton is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BHP Billiton and BHP Billiton, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 0 1 1 0 2.50
BHP Billiton 5 5 5 0 2.00

BHP Billiton currently has a consensus target price of $40.00, indicating a potential downside of 7.45%. BHP Billiton has a consensus target price of $38.18, indicating a potential downside of 21.87%. Given BHP Billiton’s stronger consensus rating and higher possible upside, research analysts plainly believe BHP Billiton is more favorable than BHP Billiton.

Institutional and Insider Ownership

4.4% of BHP Billiton shares are owned by institutional investors. Comparatively, 3.3% of BHP Billiton shares are owned by institutional investors. 0.0% of BHP Billiton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares BHP Billiton and BHP Billiton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BHP Billiton N/A N/A N/A
BHP Billiton N/A N/A N/A

BHP Billiton Company Profile

BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.

BHP Billiton Company Profile

BHP Billiton Limited is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.

Receive News & Ratings for BHP Billiton Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BHP Billiton and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply