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BHP vs PAAS

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
PAAS
Pan American Silver Corp.
BULLISH
Price
$52.29
Market Cap
$22.06B
Sector
Basic Materials
AI Confidence
75%

Valuation

P/E Ratio
BHP
19.07
PAAS
20.43
Forward P/E
BHP
15.45
PAAS
10.0
P/B Ratio
BHP
7.19
PAAS
3.15
P/S Ratio
BHP
3.38
PAAS
6.1
EV/EBITDA
BHP
15.39
PAAS
13.28

Profitability

Gross Margin
BHP
82.21%
PAAS
51.87%
Operating Margin
BHP
37.7%
PAAS
36.56%
Profit Margin
BHP
17.59%
PAAS
27.02%
ROE
BHP
21.99%
PAAS
16.73%
ROA
BHP
11.02%
PAAS
8.48%

Growth

Revenue Growth
BHP
-8.2%
PAAS
44.7%
Earnings Growth
BHP
-34.0%
PAAS
258.6%

Financial Health

Debt/Equity
BHP
0.49
PAAS
0.12
Current Ratio
BHP
1.46
PAAS
2.69
Quick Ratio
BHP
1.06
PAAS
1.92

Dividends

Dividend Yield
BHP
3.26%
PAAS
1.03%
Payout Ratio
BHP
69.9%
PAAS
17.97%

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
PAAS BULLISH

PAAS exhibits a stable financial foundation with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet (Debt/Equity 0.12). While the current price of $52.29 is well above the defensive Graham Number ($30.91), it remains significantly discounted relative to its growth-based intrinsic value of $75.52 and analyst targets. The company is experiencing explosive YoY earnings growth (258.6%) and maintains superior margins compared to sector averages. Despite a bearish short-term technical trend, the fundamental growth trajectory and low leverage provide a strong bullish case.

Strengths
Explosive earnings growth (YoY +258.6%) and revenue growth (+44.7%)
Pristine balance sheet with very low Debt/Equity ratio of 0.12
Strong liquidity position with a Current Ratio of 2.69
Risks
Extremely high PEG ratio (7.02) suggesting growth may be overpriced
Bearish short-term technical trend (0/100 score)
High volatility in quarterly earnings track record

Compare Another Pair

BHP vs PAAS: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and Pan American Silver Corp. (PAAS) 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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