Reviewing BHP Billiton (BBL) and BHP Billiton (BHP)

BHP Billiton (NYSE: BHP) and BHP Billiton (NYSE:BBL) 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 profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

3.3% of BHP Billiton shares are owned by institutional investors. Comparatively, 4.4% of BHP Billiton shares are owned by institutional investors. 0.0% of BHP Billiton 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for BHP Billiton and BHP Billiton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 5 5 5 0 2.00
BHP Billiton 1 1 1 0 2.00

BHP Billiton presently has a consensus target price of $36.38, suggesting a potential downside of 23.44%. BHP Billiton has a consensus target price of $38.00, suggesting a potential downside of 8.79%. Given BHP Billiton’s higher probable upside, analysts clearly believe BHP Billiton is more favorable than BHP Billiton.

Volatility & Risk

BHP Billiton has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, BHP Billiton has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
BHP Billiton N/A N/A N/A
BHP Billiton N/A N/A N/A

Dividends

BHP Billiton pays an annual dividend of $1.72 per share and has a dividend yield of 3.6%. BHP Billiton pays an annual dividend of $1.66 per share and has a dividend yield of 4.0%. BHP Billiton pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BHP Billiton $38.29 billion 1.99 $5.89 billion $2.21 21.50
BHP Billiton $38.29 billion 1.15 $5.89 billion N/A N/A

About BHP Billiton

BHP Billiton Limited 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. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.

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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