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 valuation, dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and media sentiment.

Do analysts rate RIO or BHP?

Rio Tinto Group currently has a consensus price target of GBX 5,325, indicating a potential upside of 17.33%. BHP Group has a consensus price target of GBX 2,126.67, indicating a potential upside of 6.17%. Given Rio Tinto Group's stronger consensus rating and higher possible upside, analysts plainly believe Rio Tinto Group is more favorable than BHP Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rio Tinto Group	0 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33
BHP Group	1 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.67

Which has more volatility and risk, 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.

Which has stronger valuation & earnings, 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	£69.64B	1.37	£13.82B	£528.17	8.59
BHP Group	£70.41B	1.82	£9.92B	£123.55	16.21

Is RIO or BHP more profitable?

Rio Tinto Group has a net margin of 19.84% compared to BHP Group's net margin of 14.09%. Rio Tinto Group's return on equity of 19.57% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Rio Tinto Group	19.84%	19.57%	9.23%
BHP Group	14.09%	18.32%	13.98%

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 7.4%. BHP Group pays an annual dividend of GBX 113 per share and has a dividend yield of 5.6%. Rio Tinto Group pays out 64.0% of its earnings in the form of a dividend. BHP Group pays out 91.5% 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.

Do insiders & institutionals have more ownership in RIO or BHP?

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

Does the media prefer RIO or BHP?

In the previous week, Rio Tinto Group had 2 more articles in the media than BHP Group. MarketBeat recorded 2 mentions for Rio Tinto Group and 0 mentions for BHP Group. Rio Tinto Group's average media sentiment score of 0.16 beat BHP Group's score of 0.00 indicating that Rio Tinto Group is being referred to more favorably in the media.

Company	Overall Sentiment
Rio Tinto Group	Neutral
BHP Group	Neutral

Summary

Rio Tinto Group beats BHP Group on 12 of the 18 factors compared between the two stocks.