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BHP vs IOSP

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
IOSP
Innospec Inc.
NEUTRAL
Price
$75.66
Market Cap
$1.88B
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
BHP
19.07
IOSP
16.2
Forward P/E
BHP
15.45
IOSP
12.06
P/B Ratio
BHP
7.19
IOSP
1.41
P/S Ratio
BHP
3.38
IOSP
1.06
EV/EBITDA
BHP
15.39
IOSP
8.22

Profitability

Gross Margin
BHP
82.21%
IOSP
27.69%
Operating Margin
BHP
37.7%
IOSP
10.32%
Profit Margin
BHP
17.59%
IOSP
6.56%
ROE
BHP
21.99%
IOSP
9.15%
ROA
BHP
11.02%
IOSP
5.47%

Growth

Revenue Growth
BHP
-8.2%
IOSP
-2.4%
Earnings Growth
BHP
-34.0%
IOSP
--

Financial Health

Debt/Equity
BHP
0.49
IOSP
0.04
Current Ratio
BHP
1.46
IOSP
2.79
Quick Ratio
BHP
1.06
IOSP
1.76

Dividends

Dividend Yield
BHP
3.26%
IOSP
2.3%
Payout Ratio
BHP
69.9%
IOSP
36.62%

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
IOSP NEUTRAL

IOSP presents as a financially stable, defensive value play with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet. While the stock trades almost exactly at its Graham Number ($74.99), suggesting fair defensive value, it trades at a significant premium to its growth-based intrinsic value ($32.69). The company demonstrates a strong track record of earnings beats, but this is offset by negative revenue growth and bearish insider sentiment. Overall, the lack of growth catalysts and poor long-term price performance temper the appeal of its strong solvency.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.04
Strong liquidity position (Current Ratio 2.79, Quick Ratio 1.76)
Consistent history of beating earnings estimates (3/4 last 4 quarters)
Risks
Negative year-over-year revenue growth (-2.40%)
Bearish insider activity with 11 sell transactions and 0 buys
Poor long-term price performance (5Y Change: -21.1%)

Compare Another Pair

BHP vs IOSP: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and Innospec Inc. (IOSP) 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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