WallStSmart

BHP Group Limited (BHP)vsHSBC Holdings PLC ADR (HSBC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 17% more annual revenue ($63.22B vs $53.99B). HSBC leads profitability with a 35.2% profit margin vs 19.0%. HSBC appears more attractively valued with a PEG of 1.02. HSBC earns a higher WallStSmart Score of 77/100 (B+).

BHP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 7.3Quality: 5.0

HSBC

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 10.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHPUndervalued (+57.8%)

Margin of Safety

+57.8%

Fair Value

$188.60

Current Price

$68.77

$119.83 discount

UndervaluedFair: $188.60Overvalued
HSBCUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$280.80

Current Price

$81.21

$199.59 discount

UndervaluedFair: $280.80Overvalued

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
$166.46B9/10

Large-cap with strong market position

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
16.2x8/10

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

HSBC6 strengths · Avg: 9.3/10
Market CapQuality
$264.52B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
55.2%10/10

Strong operational efficiency at 55.2%

Revenue GrowthGrowth
58.4%10/10

Revenue surging 58.4% year-over-year

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
24.0%8/10

Earnings expanding 24.0% YoY

Areas to Watch

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

Expensive relative to growth rate

HSBC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.332/10

Distress zone — elevated risk

Debt/EquityHealth
2.791/10

Elevated debt levels

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 : HSBC

The strongest argument for HSBC centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 35.2% and operating margin at 55.2%. Revenue growth of 58.4% demonstrates continued momentum.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : HSBC

The primary concerns for HSBC are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.79 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

BHP carries more volatility with a beta of 0.74 — expect wider price swings.

HSBC is growing revenue faster at 58.4% — sustainability is the question.

HSBC generates stronger free cash flow (9.4B), providing more financial flexibility.

Bottom Line

HSBC scores higher overall (77/100 vs 64/100), backed by strong 35.2% margins and 58.4% 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.

HSBC Holdings PLC ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

HSBC Holdings plc offers banking and financial products and services globally. The company is headquartered in London, the United Kingdom.

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