WallStSmart

BHP Group Limited (BHP)vsVale SA ADR (VALE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vale SA ADR generates 296% more annual revenue ($213.59B vs $53.99B). BHP leads profitability with a 19.0% profit margin vs 6.5%. BHP appears more attractively valued with a PEG of 5.95. BHP earns a higher WallStSmart Score of 64/100 (C+).

BHP

Buy

64

out of 100

Grade: C+

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

VALE

Buy

55

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHPUndervalued (+57.7%)

Margin of Safety

+57.7%

Fair Value

$188.14

Current Price

$67.37

$120.77 discount

UndervaluedFair: $188.14Overvalued
VALESignificantly Overvalued (-47.9%)

Margin of Safety

-47.9%

Fair Value

$11.75

Current Price

$14.69

$2.94 premium

UndervaluedFair: $11.75Overvalued

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
$179.69B9/10

Large-cap with strong market position

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
17.5x8/10

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

VALE4 strengths · Avg: 8.8/10
Revenue GrowthGrowth
50.0%10/10

Revenue surging 50.0% year-over-year

Market CapQuality
$64.25B9/10

Large-cap with strong market position

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

Areas to Watch

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

Expensive relative to growth rate

VALE4 concerns · Avg: 3.0/10
P/E RatioValuation
27.4x4/10

Moderate valuation

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

PEG RatioValuation
12.382/10

Expensive relative to growth rate

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 : VALE

The strongest argument for VALE centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 50.0% demonstrates continued momentum.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : VALE

The primary concerns for VALE are P/E Ratio, Return on Equity, Profit Margin.

Key Dynamics to Monitor

BHP profiles as a mature stock while VALE is a hypergrowth play — different risk/reward profiles.

VALE carries more volatility with a beta of 0.94 — expect wider price swings.

VALE is growing revenue faster at 50.0% — sustainability is the question.

BHP generates stronger free cash flow (4.3B), providing more financial flexibility.

Bottom Line

BHP scores higher overall (64/100 vs 55/100), backed by strong 19.0% margins and 10.8% revenue growth. 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.

Vale SA ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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