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

Insider & Institutional Ownership

32.9% of Turquoise Hill Resources shares are owned by institutional investors. Comparatively, 4.1% of BHP Billiton PLC shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Turquoise Hill Resources has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, BHP Billiton PLC has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Turquoise Hill Resources and BHP Billiton PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Turquoise Hill Resources 14.20% 1.60% 1.01%
BHP Billiton PLC N/A N/A N/A

Valuation and Earnings

This table compares Turquoise Hill Resources and BHP Billiton PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Turquoise Hill Resources $1.20 billion 5.22 $210.60 million $0.06 52.01
BHP Billiton PLC $38.29 billion 1.03 $5.89 billion N/A N/A

BHP Billiton PLC has higher revenue and earnings than Turquoise Hill Resources.

Dividends

BHP Billiton PLC pays an annual dividend of $1.66 per share and has a dividend yield of 4.5%. Turquoise Hill Resources does not pay a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Turquoise Hill Resources and BHP Billiton PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Turquoise Hill Resources 0 3 3 0 2.50
BHP Billiton PLC 1 2 1 0 2.00

Turquoise Hill Resources currently has a consensus price target of $5.00, indicating a potential upside of 60.26%. BHP Billiton PLC has a consensus price target of $38.00, indicating a potential upside of 1.99%. Given Turquoise Hill Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Turquoise Hill Resources is more favorable than BHP Billiton PLC.

Summary

Turquoise Hill Resources beats BHP Billiton PLC on 8 of the 12 factors compared between the two stocks.

Turquoise Hill Resources Company Profile

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

BHP Billiton PLC 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.

Receive News & Ratings for Turquoise Hill Resources Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Turquoise Hill Resources Ltd. and related companies with Analyst Ratings Network's FREE daily email newsletter.