BHP Billiton (BBL) versus Its Peers Head-To-Head Survey

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

Institutional & Insider Ownership

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

Profitability

This table compares BHP Billiton and its rivals’ 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 -7,771.86% 4.16% 0.62%

Earnings and Valuation

This table compares BHP Billiton and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BHP Billiton $38.29 billion $5.89 billion 18.08
BHP Billiton Competitors $11.16 billion $994.85 million -3.46

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

Dividends

BHP Billiton pays an annual dividend of $1.66 per share and has a dividend yield of 4.2%. 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 3.7% and pay out 57.8% of their earnings in the form of a dividend.

Risk and Volatility

BHP Billiton has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, BHP Billiton’s rivals have a beta of 0.42, indicating that their average stock price is 58% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 1 1 1 0 2.00
BHP Billiton Competitors 877 2905 3071 82 2.34

BHP Billiton currently has a consensus price target of $38.00, suggesting a potential downside of 4.88%. As a group, “Integrated Mining” companies have a potential upside of 1.03%. Given BHP Billiton’s rivals stronger consensus rating and higher probable upside, analysts clearly believe BHP Billiton has less favorable growth aspects than its rivals.

Summary

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

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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