Rio Tinto Group (RIO) Competitors

Rio Tinto Group (LON:RIO) and BHP Group (LON:BHP) are both large-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, media sentiment, valuation, institutional ownership, dividends, community ranking, analyst recommendations and profitability.

Does the MarketBeat Community prefer RIO or BHP?

Rio Tinto Group received 2013 more outperform votes than BHP Group when rated by MarketBeat users. Likewise, 70.36% of users gave Rio Tinto Group an outperform vote while only 39.64% of users gave BHP Group an outperform vote.

Company	Underperform	Outperform
Rio Tinto Group	Outperform Votes 2122 70.36%	Underperform Votes 894 29.64%
BHP Group	Outperform Votes 109 39.64%	Underperform Votes 166 60.36%

Do analysts prefer RIO or BHP?

Rio Tinto Group presently has a consensus price target of GBX 6,338.33, suggesting a potential upside of 31.83%. BHP Group has a consensus price target of GBX 2,710, suggesting a potential upside of 31.94%. Given BHP Group's higher possible upside, analysts clearly believe BHP Group is more favorable than Rio Tinto Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rio Tinto Group	0 Sell rating(s)	2 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.71
BHP Group	0 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.29

Which has preferable earnings and valuation, RIO or BHP?

Rio Tinto Group has higher earnings, but lower revenue than BHP Group. Rio Tinto Group is trading at a lower price-to-earnings ratio than BHP Group, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rio Tinto Group	£54.18B	1.11	£10.75B	£5.04	953.95
BHP Group	£56.03B	1.86	£7.90B	£1.19	1,726.05

Which has more risk & volatility, RIO or BHP?

Rio Tinto Group has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Does the media refer more to RIO or BHP?

In the previous week, BHP Group had 1 more articles in the media than Rio Tinto Group. MarketBeat recorded 2 mentions for BHP Group and 1 mentions for Rio Tinto Group. Rio Tinto Group's average media sentiment score of 0.73 beat BHP Group's score of 0.00 indicating that Rio Tinto Group is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Rio Tinto Group	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
BHP Group	0 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is RIO or BHP more profitable?

Rio Tinto Group has a net margin of 19.84% compared to BHP Group's net margin of 14.10%. Rio Tinto Group's return on equity of 19.72% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Rio Tinto Group	19.84%	19.72%	9.23%
BHP Group	14.10%	19.66%	13.98%

Do insiders and institutionals hold more shares of RIO or BHP?

48.0% of Rio Tinto Group shares are owned by institutional investors. Comparatively, 48.2% of BHP Group shares are owned by institutional investors. 14.6% of Rio Tinto Group shares are owned by insiders. Comparatively, 3.6% of BHP Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Is RIO or BHP a better dividend stock?

Rio Tinto Group pays an annual dividend of GBX 338 per share and has a dividend yield of 7.0%. BHP Group pays an annual dividend of GBX 113 per share and has a dividend yield of 5.5%. Rio Tinto Group pays out 6,706.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BHP Group pays out 9,495.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rio Tinto Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Rio Tinto Group beats BHP Group on 12 of the 20 factors compared between the two stocks.