WallStSmart

BHP Group Limited (BHP)vsFortuna Silver Mines Inc (FSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

BHP Group Limited generates 5601% more annual revenue ($53.99B vs $947.06M). FSM leads profitability with a 30.3% profit margin vs 19.0%. FSM trades at a lower P/E of 11.0x. FSM earns a higher WallStSmart Score of 77/100 (B+).

BHP

Buy

65

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 3.3Quality: 5.0

FSM

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 9.0Value: 8.3Quality: 7.3
Piotroski: 5/9Altman Z: 2.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHPSignificantly Overvalued (-84.5%)

Margin of Safety

-84.5%

Fair Value

$43.18

Current Price

$79.30

$36.12 premium

UndervaluedFair: $43.18Overvalued
FSMUndervalued (+46.6%)

Margin of Safety

+46.6%

Fair Value

$21.35

Current Price

$9.33

$12.02 discount

UndervaluedFair: $21.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHP5 strengths · Avg: 9.0/10
Market CapQuality
$202.77B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

Free Cash FlowQuality
$4.31B8/10

Generating 4.3B in free cash flow

FSM6 strengths · Avg: 9.7/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Profit MarginProfitability
30.3%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
43.4%10/10

Strong operational efficiency at 43.4%

Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
987.0%10/10

Earnings expanding 987.0% YoY

Price/BookValuation
1.7x8/10

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

FSM0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull 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 : FSM

The strongest argument for FSM centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 30.3% and operating margin at 43.4%. Revenue growth of 38.4% demonstrates continued momentum.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : FSM

No major red flags identified for FSM, but monitor valuation.

Key Dynamics to Monitor

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

FSM carries more volatility with a beta of 2.12 — expect wider price swings.

FSM is growing revenue faster at 38.4% — sustainability is the question.

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

Bottom Line

FSM scores higher overall (77/100 vs 65/100), backed by strong 30.3% margins and 38.4% revenue growth. 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.

Fortuna Silver Mines Inc

BASIC MATERIALS · GOLD · USA

Fortuna Silver Mines Inc. is engaged in the exploration, extraction and processing of precious and base metal deposits in Latin America. The company is headquartered in Vancouver, Canada.

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