Alcoa Corp (AA)vsBHP Group Limited (BHP)
AA
Alcoa Corp
$58.70
+3.56%
BASIC MATERIALS · Cap: $14.96B
BHP
BHP Group Limited
$68.77
+0.82%
BASIC MATERIALS · Cap: $166.46B
Smart Verdict
WallStSmart Research — data-driven comparison
BHP Group Limited generates 321% more annual revenue ($53.99B vs $12.83B). BHP leads profitability with a 19.0% profit margin vs 9.0%. BHP appears more attractively valued with a PEG of 5.95. BHP earns a higher WallStSmart Score of 64/100 (C+).
AA
Buy53
out of 100
Grade: C-
BHP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.2%
Fair Value
$74.46
Current Price
$58.70
$15.76 discount
Margin of Safety
+57.8%
Fair Value
$188.60
Current Price
$68.77
$119.83 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 40.7%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Revenue declined 1.1%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AA
The strongest argument for AA centers on P/E Ratio, Price/Book.
Bull Case : BHP
The strongest argument for BHP centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : AA
The primary concerns for AA are Altman Z-Score, PEG Ratio, Revenue Growth.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Key Dynamics to Monitor
AA profiles as a value stock while BHP is a mature play — different risk/reward profiles.
AA carries more volatility with a beta of 1.78 — expect wider price swings.
BHP is growing revenue faster at 10.8% — sustainability is the question.
BHP generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
BHP scores higher overall (64/100 vs 53/100), backed by strong 19.0% margins and 10.8% revenue growth. AA offers better value entry with a 15.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alcoa Corp
BASIC MATERIALS · ALUMINUM · USA
Alcoa Corporation produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company is headquartered in Pittsburgh, Pennsylvania.
BHP Group Limited
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.
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