Financial Comparison: Nouveau Monde Graphite (NYSE:NMG) vs. BHP Group (NYSE:BHP)

BHP Group (NYSE:BHP) and Nouveau Monde Graphite (NYSE:NMG) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Institutional and Insider Ownership

3.8% of BHP Group shares are owned by institutional investors. Comparatively, 41.1% of Nouveau Monde Graphite shares are owned by institutional investors. 0.0% of BHP Group shares are owned by company insiders. Comparatively, 22.7% of Nouveau Monde Graphite shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BHP Group and Nouveau Monde Graphite, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1	6	1	2	2.40
Nouveau Monde Graphite	1	1	4	1	2.71

BHP Group presently has a consensus price target of $56.00, suggesting a potential downside of 25.41%. Nouveau Monde Graphite has a consensus price target of $5.40, suggesting a potential upside of 146.01%. Given Nouveau Monde Graphite’s stronger consensus rating and higher probable upside, analysts plainly believe Nouveau Monde Graphite is more favorable than BHP Group.

Volatility and Risk

BHP Group has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Nouveau Monde Graphite has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares BHP Group and Nouveau Monde Graphite’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
Nouveau Monde Graphite	N/A	-57.99%	-37.40%

Earnings & Valuation

This table compares BHP Group and Nouveau Monde Graphite”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	$51.26 billion	3.72	$9.02 billion	N/A	N/A
Nouveau Monde Graphite	N/A	N/A	-$53.48 million	($0.66)	-3.33

BHP Group has higher revenue and earnings than Nouveau Monde Graphite.

Summary

Nouveau Monde Graphite beats BHP Group on 6 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 Nouveau Monde Graphite

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores for graphite. The company’s flagship property is the 100% owned Matawinie graphite property including 176 mining claims covering an area of 9,264 hectares located in Quebec. It also involved in the real estate and trading activities. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-Des-Saints, Canada.