BHP Group Limited (BHP)vsRio Tinto ADR (RIO)
BHP
BHP Group Limited
$84.49
-1.64%
BASIC MATERIALS · Cap: $214.63B
RIO
Rio Tinto ADR
$96.85
-0.35%
BASIC MATERIALS · Cap: $158.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 14% more annual revenue ($61.79B vs $53.99B). RIO leads profitability with a 19.6% profit margin vs 19.0%. RIO appears more attractively valued with a PEG of 5.69. BHP earns a higher WallStSmart Score of 65/100 (C+).
BHP
Buy65
out of 100
Grade: C+
RIO
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for BHP.
Margin of Safety
+29.4%
Fair Value
$138.95
Current Price
$96.85
$42.10 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 40.7%
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Every $100 of equity generates 35 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 28.1%
15.5% revenue growth
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BHP
The strongest argument for BHP centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.
Bull Case : RIO
The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 19.6% and operating margin at 28.1%. Revenue growth of 15.5% demonstrates continued momentum.
Bear Case : BHP
The primary concerns for BHP are Piotroski F-Score, PEG Ratio.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
BHP profiles as a mature stock while RIO is a growth play — different risk/reward profiles.
BHP carries more volatility with a beta of 0.83 — expect wider price swings.
RIO is growing revenue faster at 15.5% — 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 64/100), backed by strong 19.0% margins and 10.8% revenue growth. RIO offers better value entry with a 29.4% 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.
Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
Compare with Other OTHER INDUSTRIAL METALS & MINING Stocks
Want to dig deeper into these stocks?