WallStSmart

BHP Group Limited (BHP)vsInnospec Inc (IOSP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BHP Group Limited generates 2936% more annual revenue ($53.99B vs $1.78B). BHP leads profitability with a 19.0% profit margin vs 6.6%. IOSP appears more attractively valued with a PEG of 0.66. BHP earns a higher WallStSmart Score of 65/100 (C+).

BHP

Buy

65

out of 100

Grade: C+

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

IOSP

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 5.5Value: 8.7Quality: 6.8
Piotroski: 3/9Altman Z: 3.96
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
IOSPUndervalued (+52.0%)

Margin of Safety

+52.0%

Fair Value

$184.30

Current Price

$76.26

$108.04 discount

UndervaluedFair: $184.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHP5 strengths · Avg: 9.0/10
Market CapQuality
$201.45B10/10

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

IOSP4 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.9610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.668/10

Growing faster than its price suggests

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Areas to Watch

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

Expensive relative to growth rate

IOSP4 concerns · Avg: 2.8/10
Market CapQuality
$1.91B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.4%2/10

Revenue declined 2.4%

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 : IOSP

The strongest argument for IOSP centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : IOSP

The primary concerns for IOSP are Market Cap, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

BHP profiles as a mature stock while IOSP is a value play — different risk/reward profiles.

IOSP carries more volatility with a beta of 0.88 — expect wider price swings.

BHP is growing revenue faster at 10.8% — 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 52/100), backed by strong 19.0% margins and 10.8% revenue growth. IOSP offers better value entry with a 52.0% margin of safety. Both earn "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.

Innospec Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, the rest of North America, the United Kingdom, the rest of Europe, and internationally. The company is headquartered in Englewood, Colorado.

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