Head to Head Analysis: OR Royalties (NYSE:OR) vs. BHP Group (NYSE:BHP)

BHP Group (NYSE:BHP) and OR Royalties (NYSE:OR) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation & Earnings

This table compares BHP Group and OR Royalties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	$51.26 billion	3.64	$9.02 billion	N/A	N/A
OR Royalties	$191.16 million	41.90	$16.27 million	$0.79	54.08

BHP Group has higher revenue and earnings than OR Royalties.

Dividends

BHP Group pays an annual dividend of $2.37 per share and has a dividend yield of 3.2%. OR Royalties pays an annual dividend of $0.22 per share and has a dividend yield of 0.5%. OR Royalties pays out 27.8% of its earnings in the form of a dividend. OR Royalties has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BHP Group and OR Royalties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1	5	1	2	2.44
OR Royalties	0	2	5	2	3.00

BHP Group currently has a consensus target price of $56.00, suggesting a potential downside of 23.75%. OR Royalties has a consensus target price of $38.25, suggesting a potential downside of 10.47%. Given OR Royalties’ stronger consensus rating and higher possible upside, analysts clearly believe OR Royalties is more favorable than BHP Group.

Volatility and Risk

BHP Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

3.8% of BHP Group shares are owned by institutional investors. Comparatively, 68.5% of OR Royalties shares are owned by institutional investors. 0.0% of BHP Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares BHP Group and OR Royalties’ 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
OR Royalties	60.72%	10.67%	9.48%

Summary

OR Royalties beats BHP Group on 10 of the 15 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 OR Royalties

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.