BHP Group Limited (BHP)vsStepan Company (SCL)
BHP
BHP Group Limited
$79.30
+2.91%
BASIC MATERIALS · Cap: $201.45B
SCL
Stepan Company
$50.03
+2.25%
BASIC MATERIALS · Cap: $1.11B
Smart Verdict
WallStSmart Research — data-driven comparison
BHP Group Limited generates 2204% more annual revenue ($53.99B vs $2.34B). BHP leads profitability with a 19.0% profit margin vs -0.6%. SCL appears more attractively valued with a PEG of 1.75. BHP earns a higher WallStSmart Score of 65/100 (C+).
BHP
Buy65
out of 100
Grade: C+
SCL
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.5%
Fair Value
$43.18
Current Price
$79.30
$36.12 premium
Margin of Safety
+75.2%
Fair Value
$266.45
Current Price
$50.03
$216.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 40.7%
Every $100 of equity generates 25 in profit
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Reasonable price relative to book value
Earnings expanding 49.1% YoY
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
1.9% revenue growth
Smaller company, higher risk/reward
Operating margin of 2.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : SCL
The strongest argument for SCL centers on Price/Book, EPS Growth.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : SCL
The primary concerns for SCL are PEG Ratio, Revenue Growth, Market Cap.
Key Dynamics to Monitor
BHP profiles as a mature stock while SCL is a turnaround play — different risk/reward profiles.
SCL carries more volatility with a beta of 1.01 — 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 55/100), backed by strong 19.0% margins and 10.8% revenue growth. SCL offers better value entry with a 75.2% 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.
Stepan Company
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Stepan Company produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in North America, Europe, Latin America, and Asia. The company is headquartered in Northfield, Illinois.
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