WallStSmart

BHP Group Limited (BHP)vsEro Copper Corp (ERO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BHP Group Limited generates 6770% more annual revenue ($53.99B vs $785.84M). ERO leads profitability with a 33.6% profit margin vs 19.0%. ERO trades at a lower P/E of 9.9x. ERO earns a higher WallStSmart Score of 68/100 (B-).

BHP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 6.7Quality: 5.0

ERO

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 9.5Value: 5.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHPUndervalued (+57.8%)

Margin of Safety

+57.8%

Fair Value

$188.60

Current Price

$68.99

$119.61 discount

UndervaluedFair: $188.60Overvalued
EROSignificantly Overvalued (-83.1%)

Margin of Safety

-83.1%

Fair Value

$17.20

Current Price

$25.05

$7.85 premium

UndervaluedFair: $17.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHP6 strengths · Avg: 8.7/10
Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Market CapQuality
$178.49B9/10

Large-cap with strong market position

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

Free Cash FlowQuality
$4.31B8/10

Generating 4.3B in free cash flow

ERO6 strengths · Avg: 9.7/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
33.6%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
43.6%10/10

Strong operational efficiency at 43.6%

Revenue GrowthGrowth
161.3%10/10

Revenue surging 161.3% year-over-year

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

BHP1 concerns · Avg: 2.0/10
PEG RatioValuation
5.952/10

Expensive relative to growth rate

ERO1 concerns · Avg: 2.0/10
EPS GrowthGrowth
-11.0%2/10

Earnings declined 11.0%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : ERO

The strongest argument for ERO centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 33.6% and operating margin at 43.6%. Revenue growth of 161.3% demonstrates continued momentum.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : ERO

The primary concerns for ERO are EPS Growth.

Key Dynamics to Monitor

BHP profiles as a mature stock while ERO is a growth play — different risk/reward profiles.

ERO carries more volatility with a beta of 1.51 — expect wider price swings.

ERO is growing revenue faster at 161.3% — sustainability is the question.

BHP generates stronger free cash flow (4.3B), providing more financial flexibility.

Bottom Line

ERO scores higher overall (68/100 vs 64/100), backed by strong 33.6% margins and 161.3% revenue growth. 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.

Ero Copper Corp

BASIC MATERIALS · COPPER · USA

Ero Copper Corp. The company is headquartered in Vancouver, Canada.

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