BHP Billiton (NYSE: BHP) and BHP Billiton (NYSE:BBL) are both large-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Dividends

BHP Billiton pays an annual dividend of $1.72 per share and has a dividend yield of 4.0%. BHP Billiton pays an annual dividend of $1.66 per share and has a dividend yield of 4.4%.

Earnings & Valuation

This table compares BHP Billiton and BHP Billiton’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BHP Billiton $38.29 billion 1.81 $5.89 billion N/A N/A
BHP Billiton $38.29 billion 1.04 $5.89 billion N/A N/A

Profitability

This table compares BHP Billiton and BHP Billiton’s 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 N/A N/A N/A

Institutional & Insider Ownership

3.3% of BHP Billiton shares are owned by institutional investors. Comparatively, 4.4% of BHP Billiton shares are owned by institutional investors. 0.0% of BHP Billiton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

BHP Billiton has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, BHP Billiton has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for BHP Billiton and BHP Billiton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 5 5 5 0 2.00
BHP Billiton 1 1 1 0 2.00

BHP Billiton presently has a consensus price target of $36.38, suggesting a potential downside of 15.55%. BHP Billiton has a consensus price target of $38.00, suggesting a potential upside of 0.42%. Given BHP Billiton’s higher probable upside, analysts clearly believe BHP Billiton is more favorable than BHP Billiton.

Summary

BHP Billiton beats BHP Billiton on 4 of the 7 factors compared between the two stocks.

About BHP Billiton

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.

About BHP Billiton

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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