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BHP vs MT

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
MT
ArcelorMittal S.A.
NEUTRAL
Price
$55.92
Market Cap
$42.56B
Sector
Basic Materials
AI Confidence
80%

Valuation

P/E Ratio
BHP
19.07
MT
13.61
Forward P/E
BHP
15.45
MT
8.34
P/B Ratio
BHP
7.19
MT
1.56
P/S Ratio
BHP
3.38
MT
0.69
EV/EBITDA
BHP
15.39
MT
12.04

Profitability

Gross Margin
BHP
82.21%
MT
7.46%
Operating Margin
BHP
37.7%
MT
-5.1%
Profit Margin
BHP
17.59%
MT
5.14%
ROE
BHP
21.99%
MT
6.02%
ROA
BHP
11.02%
MT
1.11%

Growth

Revenue Growth
BHP
-8.2%
MT
1.7%
Earnings Growth
BHP
-34.0%
MT
--

Financial Health

Debt/Equity
BHP
0.49
MT
0.24
Current Ratio
BHP
1.46
MT
1.36
Quick Ratio
BHP
1.06
MT
0.46

Dividends

Dividend Yield
BHP
3.26%
MT
1.07%
Payout Ratio
BHP
69.9%
MT
13.38%

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
MT NEUTRAL

ArcelorMittal presents a complex profile with a stable Piotroski F-Score of 4/9 and a current price ($55.92) trading very close to its Graham Number ($57.52). While valuation metrics like the PEG ratio (0.42) and Forward P/E (8.34) are highly attractive, there is a significant disconnect between the current price and the growth-based intrinsic value ($28.77). The company shows strong recovery in EPS growth, but a negative operating margin (-5.10%) suggests fundamental inefficiencies or cyclical headwinds that offset the positive net profit margin.

Strengths
Very low PEG ratio (0.42) indicating undervaluation relative to earnings growth
Strong balance sheet with low Debt/Equity ratio (0.24)
Trading near the Graham Number, providing a defensive valuation floor
Risks
Negative operating margin (-5.10%) despite positive net profit
Stagnant revenue growth (1.70% YoY) indicating lack of organic expansion
Low Quick Ratio (0.46) suggesting potential short-term liquidity constraints

Compare Another Pair

BHP vs MT: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and ArcelorMittal S.A. (MT) 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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