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BHP vs HLP

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
HLP
Hongli Group Inc.
NEUTRAL
Price
$0.89
Market Cap
$65.3M
Sector
Basic Materials
AI Confidence
80%

Valuation

P/E Ratio
BHP
19.07
HLP
17.78
Forward P/E
BHP
15.45
HLP
--
P/B Ratio
BHP
7.19
HLP
1.18
P/S Ratio
BHP
3.38
HLP
3.9
EV/EBITDA
BHP
15.39
HLP
32.42

Profitability

Gross Margin
BHP
82.21%
HLP
32.91%
Operating Margin
BHP
37.7%
HLP
13.39%
Profit Margin
BHP
17.59%
HLP
6.04%
ROE
BHP
21.99%
HLP
2.65%
ROA
BHP
11.02%
HLP
1.73%

Growth

Revenue Growth
BHP
-8.2%
HLP
37.7%
Earnings Growth
BHP
-34.0%
HLP
--

Financial Health

Debt/Equity
BHP
0.49
HLP
0.17
Current Ratio
BHP
1.46
HLP
1.15
Quick Ratio
BHP
1.06
HLP
0.88

Dividends

Dividend Yield
BHP
3.26%
HLP
--
Payout Ratio
BHP
69.9%
HLP
0.0%

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
HLP NEUTRAL

HLP exhibits a stable financial foundation with a Piotroski F-Score of 5/9 and a very conservative Debt/Equity ratio of 0.17. While the current price of $0.89 is well-supported by the Graham Number ($0.92), it trades at a significant premium to its growth-based intrinsic value of $0.35. The company is outperforming its sector peers in terms of profitability and debt management, yet it suffers from a devastating technical trend (0/100) and consistent long-term price erosion. The stock is fundamentally sound but lacks any market momentum or catalyst.

Strengths
Strong YoY revenue growth of 37.70%
Very low leverage with a Debt/Equity ratio of 0.17
Positive profit margins (6.04%) in a sector where the average is negative (-9.38%)
Risks
Severe bearish technical trend (0/100) indicating strong selling pressure
Significant discrepancy between current price and intrinsic value ($0.35)
Poor long-term price performance with a 5-year decline of 74.6%

Compare Another Pair

BHP vs HLP: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and Hongli Group Inc. (HLP) 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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