BHP Billiton (NYSE: BBL) is one of 86 publicly-traded companies in the “Integrated Mining” industry, but how does it compare to its competitors? We will compare BHP Billiton to similar companies based on the strength of its profitability, earnings, analyst recommendations, dividends, valuation, institutional ownership and risk.

Earnings and Valuation

This table compares BHP Billiton and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BHP Billiton $38.29 billion $5.89 billion 17.82
BHP Billiton Competitors $11.16 billion $994.85 million -7.94

BHP Billiton has higher revenue and earnings than its competitors. BHP Billiton is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BHP Billiton and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 1 1 1 0 2.00
BHP Billiton Competitors 876 2905 3070 82 2.34

BHP Billiton currently has a consensus price target of $38.00, indicating a potential downside of 3.50%. As a group, “Integrated Mining” companies have a potential upside of 3.69%. Given BHP Billiton’s competitors stronger consensus rating and higher probable upside, analysts clearly believe BHP Billiton has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

4.4% of BHP Billiton shares are owned by institutional investors. Comparatively, 28.6% of shares of all “Integrated Mining” companies are owned by institutional investors. 13.0% of shares of all “Integrated Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares BHP Billiton and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BHP Billiton 14.21% 9.41% 4.67%
BHP Billiton Competitors -7,535.94% 4.40% 0.71%

Dividends

BHP Billiton pays an annual dividend of $1.66 per share and has a dividend yield of 4.2%. BHP Billiton pays out 75.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Mining” companies pay a dividend yield of 3.8% and pay out 58.0% of their earnings in the form of a dividend.

Volatility & Risk

BHP Billiton has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, BHP Billiton’s competitors have a beta of 0.42, meaning that their average share price is 58% less volatile than the S&P 500.

Summary

BHP Billiton beats its competitors on 8 of the 15 factors compared.

About BHP Billiton

BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.

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