BHP Group Limited (BHP)vsWarner Bros Discovery Inc (WBD)
BHP
BHP Group Limited
$65.29
-3.09%
BASIC MATERIALS · Cap: $179.69B
WBD
Warner Bros Discovery Inc
$27.42
-0.76%
COMMUNICATION SERVICES · Cap: $68.03B
Smart Verdict
WallStSmart Research — data-driven comparison
BHP Group Limited generates 45% more annual revenue ($53.99B vs $37.30B). BHP leads profitability with a 19.0% profit margin vs 1.9%. BHP appears more attractively valued with a PEG of 5.95. BHP earns a higher WallStSmart Score of 64/100 (C+).
BHP
Buy64
out of 100
Grade: C+
WBD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.7%
Fair Value
$188.14
Current Price
$65.29
$122.85 discount
Margin of Safety
-106.3%
Fair Value
$13.57
Current Price
$27.42
$13.85 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Earnings expanding 226.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : WBD
The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : WBD
The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. A P/E of 94.5x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
BHP profiles as a mature stock while WBD is a value play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.68 — 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 (64/100 vs 51/100), 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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