BHP Group Limited (BHP)vsBP PLC ADR (BP)
BHP
BHP Group Limited
$84.72
+2.63%
BASIC MATERIALS · Cap: $214.23B
BP
BP PLC ADR
$43.34
-1.07%
ENERGY · Cap: $114.92B
Smart Verdict
WallStSmart Research — data-driven comparison
BP PLC ADR generates 257% more annual revenue ($193.00B vs $53.99B). BHP leads profitability with a 19.0% profit margin vs 1.7%. BP appears more attractively valued with a PEG of 0.05. BP earns a higher WallStSmart Score of 65/100 (B-).
BHP
Buy65
out of 100
Grade: C+
BP
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.1%
Fair Value
$43.51
Current Price
$84.72
$41.21 premium
Margin of Safety
+26.9%
Fair Value
$52.77
Current Price
$43.34
$9.43 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 40.7%
Every $100 of equity generates 25 in profit
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Growing faster than its price suggests
Earnings expanding 474.5% YoY
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 8.4x book value
ROE of 5.8% — below average capital efficiency
1.7% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : BHP
The strongest argument for BHP centers on Market Cap, Operating Margin, 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 : BP
The strongest argument for BP centers on PEG Ratio, EPS Growth, Market Cap. Revenue growth of 11.6% demonstrates continued momentum. PEG of 0.05 suggests the stock is reasonably priced for its growth.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : BP
The primary concerns for BP are P/E Ratio, Price/Book, Return on Equity. Thin 1.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
BHP profiles as a mature stock while BP is a value play — different risk/reward profiles.
BHP carries more volatility with a beta of 0.80 — expect wider price swings.
BP is growing revenue faster at 11.6% — sustainability is the question.
BHP generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
BHP scores higher overall (65/100 vs 65/100), backed by strong 19.0% margins and 10.8% revenue growth. BP offers better value entry with a 26.9% margin of safety. Both earn "Buy" and "Strong 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.
BP PLC ADR
ENERGY · OIL & GAS INTEGRATED · USA
BP plc participates in the energy business globally. The company is headquartered in London, the United Kingdom.
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