BHP Group Limited (BHP)vsBank of Montreal (BMO)
BHP
BHP Group Limited
$68.77
+0.82%
BASIC MATERIALS · Cap: $166.46B
BMO
Bank of Montreal
$136.39
-0.53%
FINANCIAL SERVICES · Cap: $94.86B
Smart Verdict
WallStSmart Research — data-driven comparison
BHP Group Limited generates 61% more annual revenue ($53.99B vs $33.48B). BMO leads profitability with a 27.1% profit margin vs 19.0%. BMO appears more attractively valued with a PEG of 1.46. BMO earns a higher WallStSmart Score of 75/100 (B+).
BHP
Buy64
out of 100
Grade: C+
BMO
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.8%
Fair Value
$188.60
Current Price
$68.77
$119.83 discount
Margin of Safety
+57.3%
Fair Value
$336.32
Current Price
$136.39
$199.93 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Strong operational efficiency at 39.9%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 7.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : BMO
The strongest argument for BMO centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.1% and operating margin at 39.9%. PEG of 1.46 suggests the stock is reasonably priced for its growth.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : BMO
No major red flags identified for BMO, but monitor valuation.
Key Dynamics to Monitor
BMO carries more volatility with a beta of 1.16 — expect wider price swings.
BHP is growing revenue faster at 10.8% — sustainability is the question.
BMO generates stronger free cash flow (7.0B), providing more financial flexibility.
Monitor OTHER INDUSTRIAL METALS & MINING industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BMO scores higher overall (75/100 vs 64/100), backed by strong 27.1% margins. BHP offers better value entry with a 57.8% margin of safety. Both earn "Strong 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.
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.
Bank of Montreal
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Bank of Montreal offers diversified financial services primarily in North America. The company is headquartered in Montreal, Canada.
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