Vale (VALE) Competitors

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

Does the MarketBeat Community believe in VALE or BHP?

BHP Group received 81 more outperform votes than Vale when rated by MarketBeat users. Likewise, 66.14% of users gave BHP Group an outperform vote while only 61.05% of users gave Vale an outperform vote.

Company	Underperform	Outperform
Vale	Outperform Votes 790 61.05%	Underperform Votes 504 38.95%
BHP Group	Outperform Votes 871 66.14%	Underperform Votes 446 33.86%

Does the media prefer VALE or BHP?

In the previous week, Vale and Vale both had 11 articles in the media. Vale's average media sentiment score of 1.12 beat BHP Group's score of 0.57 indicating that Vale is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vale	8 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
BHP Group	6 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has more risk and volatility, VALE or BHP?

Vale has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Is VALE or BHP a better dividend stock?

Vale pays an annual dividend of $0.91 per share and has a dividend yield of 10.2%. BHP Group pays an annual dividend of $2.93 per share and has a dividend yield of 6.0%. Vale pays out 42.1% of its earnings in the form of a dividend. BHP Group pays out 63.4% 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. Vale is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts rate VALE or BHP?

Vale presently has a consensus price target of $14.38, indicating a potential upside of 61.59%. BHP Group has a consensus price target of $68.00, indicating a potential upside of 38.21%. Given Vale's higher probable upside, equities research analysts plainly believe Vale is more favorable than BHP Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vale	1 Sell rating(s)	6 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.20
BHP Group	0 Sell rating(s)	3 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.67

Is VALE or BHP more profitable?

Vale has a net margin of 22.59% compared to BHP Group's net margin of 0.00%. Vale's return on equity of 21.07% beat BHP Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Vale	22.59%	21.07%	9.22%
BHP Group	N/A	N/A	N/A

Which has stronger valuation & earnings, VALE or BHP?

Vale has higher earnings, but lower revenue than BHP Group. 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	$40.99B	0.97	$7.98B	$2.16	4.12
BHP Group	$55.66B	2.24	$7.90B	$4.62	10.65

Do institutionals & insiders believe in VALE or BHP?

21.9% of Vale shares are held by institutional investors. Comparatively, 3.8% of BHP Group shares are held by institutional investors. 0.0% of BHP Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Vale and BHP Group tied by winning 10 of the 20 factors compared between the two stocks.