BHP Billiton (BBL) vs. The Competition Head-To-Head Survey

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

Volatility and Risk

BHP Billiton has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, BHP Billiton’s competitors have a beta of 0.41, suggesting that their average stock price is 59% less volatile than the S&P 500.

Institutional and Insider Ownership

4.4% of BHP Billiton shares are held by institutional investors. Comparatively, 28.6% of shares of all “Integrated Mining” companies are held by institutional investors. 13.0% of shares of all “Integrated Mining” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
BHP Billiton $38.29 billion $5.89 billion 20.49
BHP Billiton Competitors $11.16 billion $994.85 million -22.22

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

Analyst Recommendations

This is a summary of current recommendations for BHP Billiton and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 0 1 1 0 2.50
BHP Billiton Competitors 898 2935 3086 84 2.34

BHP Billiton presently has a consensus price target of $40.00, suggesting a potential downside of 11.66%. As a group, “Integrated Mining” companies have a potential downside of 4.38%. Given BHP Billiton’s competitors higher probable upside, analysts plainly believe BHP Billiton has less favorable growth aspects than its competitors.

Profitability

This table compares BHP Billiton and its competitors’ 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%

Dividends

BHP Billiton pays an annual dividend of $1.66 per share and has a dividend yield of 3.7%. BHP Billiton pays out 75.1% 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 3.3% and pay out 57.6% of their earnings in the form of a dividend.

Summary

BHP Billiton beats its competitors on 8 of the 15 factors compared.

BHP Billiton Company Profile

BHP Billiton Plc 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. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.

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