BHP Group (NYSE:BHP) vs. Glencore (OTCMKTS:GLNCY) Financial Review

BHP Group (NYSE:BHP) and Glencore (OTCMKTS:GLNCY) 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 earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

BHP Group pays an annual dividend of $2.37 per share and has a dividend yield of 4.5%. Glencore pays an annual dividend of $0.17 per share and has a dividend yield of 2.0%. BHP Group pays out 53.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

3.8% of BHP Group shares are held by institutional investors. Comparatively, 0.1% of Glencore shares are held by institutional investors. 0.0% of BHP Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares BHP Group and Glencore’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
Glencore	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for BHP Group and Glencore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1	6	0	1	2.13
Glencore	0	1	1	4	3.50

BHP Group presently has a consensus target price of $48.50, suggesting a potential downside of 6.89%. Given BHP Group’s higher possible upside, equities research analysts plainly believe BHP Group is more favorable than Glencore.

Earnings & Valuation

This table compares BHP Group and Glencore”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	$51.26 billion	2.58	$9.02 billion	$4.40	11.84
Glencore	$230.94 billion	0.21	-$1.63 billion	N/A	N/A

BHP Group has higher earnings, but lower revenue than Glencore.

Volatility and Risk

BHP Group has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Glencore has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

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 Glencore

Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments: Marketing Activities and Industrial Activities. The company engages in production and marketing copper, cobalt, lead, nickel, zinc, chrome ore, ferrochrome, vanadium, aluminum, alumina, and iron ore; and coal, crude oil, refined products, and natural gas, as well as oil exploration/production and refining/distribution. It also operates marketing and distribution of physical commodities sourced from third party producers and company’s production to industrial consumers, including the battery, electronic, construction, automotive, steel, energy, and oil industries. In addition, the company provides financing, logistics, and other services to producers and consumers of commodities. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.