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BHP vs ECL

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
ECL
Ecolab Inc.
NEUTRAL
Price
$267.88
Market Cap
$75.66B
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
BHP
19.07
ECL
36.75
Forward P/E
BHP
15.45
ECL
27.64
P/B Ratio
BHP
7.19
ECL
7.73
P/S Ratio
BHP
3.38
ECL
4.7
EV/EBITDA
BHP
15.39
ECL
21.36

Profitability

Gross Margin
BHP
82.21%
ECL
44.51%
Operating Margin
BHP
37.7%
ECL
19.05%
Profit Margin
BHP
17.59%
ECL
12.91%
ROE
BHP
21.99%
ECL
22.52%
ROA
BHP
11.02%
ECL
7.84%

Growth

Revenue Growth
BHP
-8.2%
ECL
4.8%
Earnings Growth
BHP
-34.0%
ECL
20.2%

Financial Health

Debt/Equity
BHP
0.49
ECL
0.92
Current Ratio
BHP
1.46
ECL
1.08
Quick Ratio
BHP
1.06
ECL
0.77

Dividends

Dividend Yield
BHP
3.26%
ECL
1.02%
Payout Ratio
BHP
69.9%
ECL
36.81%

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
ECL NEUTRAL

Ecolab exhibits stable financial health with a Piotroski F-Score of 6/9, though it currently trades at a significant premium to its Graham Number ($75.38) and Intrinsic Value ($215.06). While the company demonstrates strong profitability with an ROE of 22.52% and robust earnings growth of 20.2%, its valuation is stretched as evidenced by a PEG ratio of 2.49 and a P/E of 36.75. Bearish technical trends and negative insider sentiment contrast with a bullish analyst consensus, suggesting a high-quality company that is currently overpriced for new entries.

Strengths
Strong Return on Equity (ROE) of 22.52%
Robust year-over-year earnings growth of 20.20%
Stable financial health indicated by a Piotroski F-Score of 6/9
Risks
Significant overvaluation relative to intrinsic value ($267.88 vs $215.06)
High PEG ratio (2.49) suggesting price is outstripping growth
Sluggish revenue growth (4.80%) compared to earnings growth

Compare Another Pair

BHP vs ECL: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and Ecolab Inc. (ECL) 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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