Analyzing Anglo American (OTCMKTS:NGLOY) & BHP Group (NYSE:BHP)

BHP Group (NYSE:BHP) and Anglo American (OTCMKTS:NGLOY) are both large-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares BHP Group and Anglo American’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BHP Group	N/A	N/A	N/A
Anglo American	N/A	N/A	N/A

Insider & Institutional Ownership

3.8% of BHP Group shares are owned by institutional investors. Comparatively, 0.0% of Anglo American 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 is poised for long-term growth.

Volatility & Risk

BHP Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Anglo American has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for BHP Group and Anglo American, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	0	3	2	1	2.67
Anglo American	2	2	3	0	2.14

BHP Group currently has a consensus target price of $53.00, suggesting a potential upside of 6.39%. Given BHP Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe BHP Group is more favorable than Anglo American.

Valuation and Earnings

This table compares BHP Group and Anglo American”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	$55.66 billion	2.27	$7.90 billion	N/A	N/A
Anglo American	$30.65 billion	1.28	$283.00 million	N/A	N/A

BHP Group has higher revenue and earnings than Anglo American.

Dividends

BHP Group pays an annual dividend of $2.93 per share and has a dividend yield of 5.9%. Anglo American pays an annual dividend of $0.39 per share and has a dividend yield of 2.7%.

Summary

BHP Group beats Anglo American on 9 of the 11 factors compared between the two stocks.

About BHP Group

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. The company was founded in 1851 and is headquartered in Melbourne, Australia.

About Anglo American

Anglo American plc operates as a mining company in the United Kingdom and internationally. It explores for rough and polished diamonds, copper, platinum group metals and nickel, steelmaking coal, and iron ore; and nickel, polyhalite, and manganese ores. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.