Comparing BHP Billiton (BHP) and Its Peers

BHP Billiton (NYSE: BHP) is one of 86 public companies in the “Integrated Mining” industry, but how does it compare to its peers? We will compare BHP Billiton to related companies based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, risk and valuation.

Institutional & Insider Ownership

3.3% of BHP Billiton shares are owned by institutional investors. Comparatively, 28.6% of shares of all “Integrated Mining” companies are owned by institutional investors. 0.0% of BHP Billiton shares are owned by company insiders. Comparatively, 13.0% of shares of all “Integrated Mining” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares BHP Billiton and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BHP Billiton N/A N/A N/A
BHP Billiton Competitors -7,772.75% 4.09% 0.55%

Analyst Ratings

This is a summary of recent recommendations and price targets for BHP Billiton and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 5 5 5 0 2.00
BHP Billiton Competitors 880 2935 3086 84 2.34

BHP Billiton currently has a consensus target price of $38.18, indicating a potential downside of 23.13%. As a group, “Integrated Mining” companies have a potential downside of 4.64%. Given BHP Billiton’s peers stronger consensus rating and higher probable upside, analysts plainly believe BHP Billiton has less favorable growth aspects than its peers.

Risk & Volatility

BHP Billiton has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, BHP Billiton’s peers have a beta of 0.41, indicating that their average share price is 59% less volatile than the S&P 500.

Dividends

BHP Billiton pays an annual dividend of $1.72 per share and has a dividend yield of 3.5%. BHP Billiton pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Mining” companies pay a dividend yield of 3.4% and pay out 57.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares BHP Billiton and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BHP Billiton $38.29 billion $5.89 billion 22.48
BHP Billiton Competitors $11.16 billion $994.85 million -23.95

BHP Billiton has higher revenue and earnings than its peers. BHP Billiton is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

BHP Billiton peers beat BHP Billiton on 9 of the 15 factors compared.

BHP Billiton Company Profile

BHP Billiton Limited is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.

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