BHP Group (NYSE:BHP) versus Lundin Mining (OTC:LUNMF) Head to Head Contrast

BHP Group (NYSE:BHP) and Lundin Mining (OTC:LUNMF) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Dividends

BHP Group pays an annual dividend of $1.97 per share and has a dividend yield of 4.0%. Lundin Mining pays an annual dividend of $0.07 per share and has a dividend yield of 0.8%. BHP Group pays out 44.8% of its earnings in the form of a dividend. Lundin Mining pays out -53.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares BHP Group and Lundin Mining”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	$53.60 billion	2.35	$7.90 billion	$4.40	11.29
Lundin Mining	$3.42 billion	2.25	$241.56 million	($0.13)	-69.28

BHP Group has higher revenue and earnings than Lundin Mining. Lundin Mining is trading at a lower price-to-earnings ratio than BHP Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for BHP Group and Lundin Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	0	3	1	2	2.83
Lundin Mining	0	1	0	0	2.00

BHP Group currently has a consensus target price of $53.00, indicating a potential upside of 6.68%. Given BHP Group’s stronger consensus rating and higher probable upside, research analysts plainly believe BHP Group is more favorable than Lundin Mining.

Insider and Institutional Ownership

3.8% of BHP Group shares are owned by institutional investors. Comparatively, 0.1% of Lundin Mining shares are owned by institutional investors. 0.0% of BHP Group shares are owned by insiders. Comparatively, 0.4% of Lundin Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares BHP Group and Lundin Mining’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
Lundin Mining	-5.15%	5.27%	3.05%

Risk and Volatility

BHP Group has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Summary

BHP Group beats Lundin Mining on 12 of the 17 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 Lundin Mining

LUNDIN MINING CORPORATION is a rapidly growing, diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland. The Company currently has six mines in operation producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes the world class Tenke Fungurume copper cobalt project in the Democratic Republic of Congo and the Ozernoe zinc project in Russia. The Company holds an extensive exploration portfolio and interests in international mining and exploration ventures.