WallStSmart

BHP Group Limited (BHP)vsKnife River Corporation (KNF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BHP Group Limited generates 1616% more annual revenue ($53.99B vs $3.15B). BHP leads profitability with a 19.0% profit margin vs 5.0%. KNF appears more attractively valued with a PEG of 1.73. 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

KNF

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 5.5Value: 6.0Quality: 6.3
Piotroski: 3/9Altman Z: 2.77
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
KNFUndervalued (+43.6%)

Margin of Safety

+43.6%

Fair Value

$143.02

Current Price

$89.71

$53.31 discount

UndervaluedFair: $143.02Overvalued

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

KNF1 strengths · Avg: 8.0/10
EPS GrowthGrowth
36.1%8/10

Earnings expanding 36.1% YoY

Areas to Watch

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

Expensive relative to growth rate

KNF4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
32.5x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : KNF

The strongest argument for KNF centers on EPS Growth. Revenue growth of 14.9% demonstrates continued momentum.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : KNF

The primary concerns for KNF are PEG Ratio, P/E Ratio, Profit Margin. Thin 5.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

BHP carries more volatility with a beta of 0.80 — expect wider price swings.

KNF is growing revenue faster at 14.9% — 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 59/100), backed by strong 19.0% margins and 10.8% revenue growth. KNF offers better value entry with a 43.6% 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.

Knife River Corporation

BASIC MATERIALS · BUILDING MATERIALS · USA

Knife River Corporation provides aggregates-based construction materials and contracting services in the United States. The company is headquartered in Bismarck, North Dakota.

Want to dig deeper into these stocks?