VALE vs. BHP, SCCO, RIO, FCX, CLF, HBM, MP, SGML, NGD, and GSM
Should you be buying Vale stock or one of its competitors? The main competitors of Vale include BHP Group (BHP), Southern Copper (SCCO), Rio Tinto Group (RIO), Freeport-McMoRan (FCX), Cleveland-Cliffs (CLF), Hudbay Minerals (HBM), MP Materials (MP), Sigma Lithium (SGML), New Gold (NGD), and Ferroglobe (GSM). These companies are all part of the "metal mining" industry.
Vale (NYSE:VALE) and BHP Group (NYSE:BHP) are both large-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their media sentiment, profitability, risk, dividends, institutional ownership, community ranking, earnings, valuation and analyst recommendations.
Vale has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Vale pays an annual dividend of $1.18 per share and has a dividend yield of 9.8%. BHP Group pays an annual dividend of $2.85 per share and has a dividend yield of 4.8%. Vale pays out 65.2% of its earnings in the form of a dividend.
BHP Group has higher revenue and earnings than Vale.
Vale currently has a consensus target price of $16.67, suggesting a potential upside of 38.33%. BHP Group has a consensus target price of $50.00, suggesting a potential downside of 16.01%. Given Vale's stronger consensus rating and higher possible upside, equities analysts clearly believe Vale is more favorable than BHP Group.
In the previous week, BHP Group had 20 more articles in the media than Vale. MarketBeat recorded 26 mentions for BHP Group and 6 mentions for Vale. Vale's average media sentiment score of 1.21 beat BHP Group's score of 0.16 indicating that Vale is being referred to more favorably in the media.
BHP Group received 83 more outperform votes than Vale when rated by MarketBeat users. Likewise, 66.06% of users gave BHP Group an outperform vote while only 61.17% of users gave Vale an outperform vote.
21.9% of Vale shares are owned by institutional investors. Comparatively, 3.8% of BHP Group shares are owned by institutional investors. 0.0% of BHP Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Vale has a net margin of 18.72% compared to BHP Group's net margin of 0.00%. Vale's return on equity of 19.59% beat BHP Group's return on equity.
Summary
Vale and BHP Group tied by winning 9 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding VALE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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