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BHP vs CF

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
CF
CF Industries Holdings, Inc.
NEUTRAL
Price
$120.93
Market Cap
$18.58B
Sector
Basic Materials
AI Confidence
80%

Valuation

P/E Ratio
BHP
19.07
CF
13.48
Forward P/E
BHP
15.45
CF
13.25
P/B Ratio
BHP
7.19
CF
3.84
P/S Ratio
BHP
3.38
CF
2.62
EV/EBITDA
BHP
15.39
CF
7.15

Profitability

Gross Margin
BHP
82.21%
CF
38.45%
Operating Margin
BHP
37.7%
CF
35.31%
Profit Margin
BHP
17.59%
CF
20.54%
ROE
BHP
21.99%
CF
23.4%
ROA
BHP
11.02%
CF
10.62%

Growth

Revenue Growth
BHP
-8.2%
CF
22.8%
Earnings Growth
BHP
-34.0%
CF
37.1%

Financial Health

Debt/Equity
BHP
0.49
CF
0.47
Current Ratio
BHP
1.46
CF
3.37
Quick Ratio
BHP
1.06
CF
2.79

Dividends

Dividend Yield
BHP
3.26%
CF
1.65%
Payout Ratio
BHP
69.9%
CF
22.3%

AI Verdict

BHP NEUTRAL

BHP's Piotroski F-Score of 6/9 indicates stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $27.35 and intrinsic value of $24.78, reflecting a substantial premium. Despite strong profitability metrics like 37.7% operating margin and 21.99% ROE, earnings and revenue growth are sharply negative year-over-year. Analysts consensus is a hold with a $57.00 target, below current price, suggesting limited upside.

Strengths
High operating margin of 37.70% indicates strong cost control and pricing power
ROE of 21.99% exceeds sector average significantly, signaling efficient equity use
Debt/Equity of 0.49 is below sector average of 0.63, indicating conservative leverage
Risks
Revenue growth down 8.20% YoY and earnings down 34.00%, indicating deteriorating fundamentals
P/E of 19.07 is high relative to earnings contraction, increasing valuation risk
Price/Book of 7.19 is extremely elevated, suggesting overvaluation relative to book value
CF NEUTRAL

CF Industries presents a dichotomy between strong fundamental profitability and bearish sentiment indicators. The Piotroski F-Score of 4/9 indicates stable but non-optimal financial health, while the stock trades significantly above its Graham Number ($79.74) but well below its growth-based Intrinsic Value ($264.62). While the company boasts an impressive ROE of 23.40% and a very healthy current ratio of 3.37, these strengths are offset by aggressive insider selling and a high PEG ratio of 5.67, suggesting that current growth may be overpriced.

Strengths
Strong profitability with an ROE of 23.40% and Operating Margin of 35.31%
Excellent liquidity position with a Current Ratio of 3.37
Conservative leverage with a Debt/Equity ratio of 0.47, well below the sector average of 1.03
Risks
Significant insider selling totaling $33.49M with zero buy transactions in 6 months
High PEG ratio (5.67) indicating potential overvaluation relative to earnings growth
Bearish technical trend (0/100) and recent 1-month price decline

Compare Another Pair

BHP vs CF: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and CF Industries Holdings, Inc. (CF) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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