Paringa Resources (OTCMKTS:PNGZF) and BHP Group (NYSE:BBL) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Risk & Volatility

Paringa Resources has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

4.6% of BHP Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Paringa Resources and BHP Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paringa Resources N/A N/A -$7.11 million N/A N/A
BHP Group $43.64 billion 1.22 $3.71 billion $3.36 14.99

BHP Group has higher revenue and earnings than Paringa Resources.

Dividends

BHP Group pays an annual dividend of $2.20 per share and has a dividend yield of 4.4%. Paringa Resources does not pay a dividend. BHP Group pays out 65.5% of its earnings in the form of a dividend. BHP Group has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Paringa Resources and BHP Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paringa Resources 0 0 0 0 N/A
BHP Group 0 3 2 0 2.40

Profitability

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

Net Margins Return on Equity Return on Assets
Paringa Resources N/A N/A N/A
BHP Group N/A N/A N/A

Summary

BHP Group beats Paringa Resources on 7 of the 8 factors compared between the two stocks.

About Paringa Resources

Paringa Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral resource properties in the United States. The company holds an interest in the Buck Creek Mine Complex located in the Illinois coal basin. As of June 30, 2018, it owned 40,751 gross acres of coal leases in Kentucky, the United States. Paringa Resources Limited was incorporated in 2012 and is headquartered in Rumsey, Kentucky.

About BHP Group

BHP Group discovers, acquires, develops, and markets natural resources worldwide. The company engages in the exploration, development, and production of oil and gas properties; and mining of copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ores, as well as metallurgical and energy coal. It also engages in the mining, smelting, and refining of nickel; provision of freight, finance, and administrative services, as well as trading, marketing, and support services; and potash development activities. BHP Group is headquartered in Melbourne, Australia.

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