Vale (VALE) Competitors

Vale (NYSE:VALE) and BHP Group (NYSE:BHP) are both large-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability, media sentiment and institutional ownership.

Which has more volatility and risk, VALE or BHP?

Vale has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Do analysts recommend VALE or BHP?

Vale presently has a consensus target price of $11.84, suggesting a potential upside of 15.89%. BHP Group has a consensus target price of $48.50, suggesting a potential downside of 8.28%. Given Vale's stronger consensus rating and higher possible upside, equities analysts clearly believe Vale is more favorable than BHP Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vale	0 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50
BHP Group	1 Sell rating(s)	5 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.14

Which has better earnings & valuation, VALE or BHP?

BHP Group has higher revenue and earnings than Vale. Vale 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
Vale	$36.60B	1.27	$6.17B	$1.23	8.31
BHP Group	$55.66B	2.41	$7.90B	$4.40	12.02

Does the media refer more to VALE or BHP?

In the previous week, Vale had 13 more articles in the media than BHP Group. MarketBeat recorded 20 mentions for Vale and 7 mentions for BHP Group. Vale's average media sentiment score of 1.10 beat BHP Group's score of 1.04 indicating that Vale is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vale	13 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
BHP Group	5 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is VALE or BHP a better dividend stock?

Vale pays an annual dividend of $0.72 per share and has a dividend yield of 7.0%. BHP Group pays an annual dividend of $1.97 per share and has a dividend yield of 3.7%. Vale pays out 58.5% of its earnings in the form of a dividend. BHP Group pays out 44.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Do institutionals and insiders believe in VALE or BHP?

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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Is VALE or BHP more profitable?

Vale has a net margin of 14.23% compared to BHP Group's net margin of 0.00%. Vale's return on equity of 18.14% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Vale	14.23%	18.14%	7.99%
BHP Group	N/A	N/A	N/A

Summary

Vale beats BHP Group on 10 of the 19 factors compared between the two stocks.