Financial Contrast: Anglo American (OTCMKTS:NGLOY) vs. BHP Group (NYSE:BHP)

Anglo American (OTCMKTS:NGLOY) 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, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Anglo American and BHP Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anglo American	N/A	N/A	N/A
BHP Group	N/A	N/A	N/A

Insider and Institutional Ownership

0.0% of Anglo American 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 company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Anglo American and BHP Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anglo American	2	2	3	0	2.14
BHP Group	0	3	2	1	2.67

BHP Group has a consensus price target of $53.00, indicating a potential upside of 6.39%. Given BHP Group’s stronger consensus rating and higher possible upside, analysts clearly believe BHP Group is more favorable than Anglo American.

Dividends

Anglo American pays an annual dividend of $0.39 per share and has a dividend yield of 2.7%. BHP Group pays an annual dividend of $2.93 per share and has a dividend yield of 5.9%.

Valuation & Earnings

This table compares Anglo American and BHP Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anglo American	$30.65 billion	1.28	$283.00 million	N/A	N/A
BHP Group	$55.66 billion	2.27	$7.90 billion	N/A	N/A

BHP Group has higher revenue and earnings than Anglo American.

Volatility and Risk

Anglo American has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Summary

BHP Group beats Anglo American on 9 of the 11 factors compared between the two stocks.

About Anglo American

Anglo American plc operates as a mining company in the United Kingdom and internationally. It explores for rough and polished diamonds, copper, platinum group metals and nickel, steelmaking coal, and iron ore; and nickel, polyhalite, and manganese ores. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.

About BHP Group

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. The company was founded in 1851 and is headquartered in Melbourne, Australia.