WallStSmart

BHP Group Limited (BHP)vsValhi Inc (VHI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BHP Group Limited generates 2499% more annual revenue ($53.99B vs $2.08B). BHP leads profitability with a 19.0% profit margin vs -2.8%. VHI appears more attractively valued with a PEG of 0.32. 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

VHI

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 2.0Value: 8.3Quality: 5.0
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
VHIUndervalued (+65.3%)

Margin of Safety

+65.3%

Fair Value

$45.18

Current Price

$15.05

$30.13 discount

UndervaluedFair: $45.18Overvalued

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

VHI2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3210/10

Growing faster than its price suggests

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Areas to Watch

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

Expensive relative to growth rate

VHI4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Market CapQuality
$420.29M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-4.0%2/10

ROE of -4.0% — below average capital efficiency

EPS GrowthGrowth
-95.7%2/10

Earnings declined 95.7%

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 : VHI

The strongest argument for VHI centers on PEG Ratio, Price/Book. PEG of 0.32 suggests the stock is reasonably priced for its growth.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : VHI

The primary concerns for VHI are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

BHP profiles as a mature stock while VHI is a turnaround play — different risk/reward profiles.

VHI carries more volatility with a beta of 1.11 — 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 42/100), backed by strong 19.0% margins and 10.8% revenue growth. VHI offers better value entry with a 65.3% margin of safety. Both earn "Buy" and "Hold" 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.

Valhi Inc

BASIC MATERIALS · CHEMICALS · USA

Valhi, Inc. engages in the chemicals, components, and real estate development and management businesses in Asia Pacific, Europe, North America, and internationally.

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