Analyzing Exxaro Resources (OTCMKTS:EXXAY) and BHP Group (NYSE:BHP)

Exxaro Resources (OTCMKTS:EXXAY) and BHP Group (NYSE:BHP) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Dividends

Exxaro Resources pays an annual dividend of $0.56 per share and has a dividend yield of 6.9%. BHP Group pays an annual dividend of $1.97 per share and has a dividend yield of 4.0%. BHP Group pays out 44.8% of its earnings in the form of a dividend.

Institutional and Insider Ownership

3.8% of BHP Group shares are owned by institutional investors. 0.0% of BHP Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Exxaro Resources and BHP Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exxaro Resources	0	0	0	0	0.00
BHP Group	0	2	2	2	3.00

BHP Group has a consensus price target of $53.00, suggesting a potential upside of 7.46%. Given BHP Group’s stronger consensus rating and higher probable upside, analysts plainly believe BHP Group is more favorable than Exxaro Resources.

Risk & Volatility

Exxaro Resources has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Profitability

This table compares Exxaro Resources and BHP Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exxaro Resources	N/A	N/A	N/A
BHP Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Exxaro Resources and BHP Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exxaro Resources	$1.78 billion	1.63	$679.76 million	N/A	N/A
BHP Group	$53.60 billion	2.33	$7.90 billion	$4.40	11.21

BHP Group has higher revenue and earnings than Exxaro Resources.

Summary

BHP Group beats Exxaro Resources on 9 of the 12 factors compared between the two stocks.

About Exxaro Resources

Exxaro Resources Limited engages in coal, iron ore investment, pigment manufacturing, renewable energy, and residual base metal businesses in South Africa, Europe, the United States, and Australia. The company operates through Coal; Ferrous; Energy; and Other segments. It produces thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; offers gas-atomised ferrosilicon for use in separation plants, as well as iron ore; and operates two wind farms. The company was formerly known as Kumba Iron Ore Limited and changed its name to Exxaro Resources Limited in November 2006. The company is based in Pretoria, South Africa.

About BHP Group

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. The company was founded in 1851 and is headquartered in Melbourne, Australia.