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BHP vs NEU

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
NEU
NewMarket Corporation
NEUTRAL
Price
$675.62
Market Cap
$6.21B
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
BHP
19.07
NEU
15.43
Forward P/E
BHP
15.45
NEU
26.17
P/B Ratio
BHP
7.19
NEU
3.59
P/S Ratio
BHP
3.38
NEU
2.31
EV/EBITDA
BHP
15.39
NEU
10.13

Profitability

Gross Margin
BHP
82.21%
NEU
31.26%
Operating Margin
BHP
37.7%
NEU
23.58%
Profit Margin
BHP
17.59%
NEU
15.25%
ROE
BHP
21.99%
NEU
25.27%
ROA
BHP
11.02%
NEU
10.79%

Growth

Revenue Growth
BHP
-8.2%
NEU
-4.5%
Earnings Growth
BHP
-34.0%
NEU
-4.9%

Financial Health

Debt/Equity
BHP
0.49
NEU
0.59
Current Ratio
BHP
1.46
NEU
2.55
Quick Ratio
BHP
1.06
NEU
1.23

Dividends

Dividend Yield
BHP
3.26%
NEU
1.74%
Payout Ratio
BHP
69.9%
NEU
26.26%

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
NEU NEUTRAL

NEU exhibits strong fundamental health with a Piotroski F-Score of 7/9 and robust liquidity, but it is currently trading at a significant premium to its deterministic value. The current price of $675.62 far exceeds both the Graham Number ($430.75) and the growth-based Intrinsic Value ($306.46). While profitability remains high with an ROE of 25.27%, the company is facing a growth contraction with negative YoY revenue and earnings growth. Consequently, the stock appears overvalued despite its operational quality.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Excellent profitability with an ROE of 25.27% and Operating Margin of 23.58%
Robust liquidity position with a Current Ratio of 2.55
Risks
Severe overvaluation relative to Graham Number and Intrinsic Value
Negative growth trajectory with YoY revenue and earnings both down ~4.5-4.9%
Extremely high PEG ratio (5.64) suggesting price is disconnected from growth

Compare Another Pair

BHP vs NEU: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and NewMarket Corporation (NEU) 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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