Polymet Mining Corp (NYSE: PLM) and BHP Billiton PLC (NYSE:BBL) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitabiliy.

Valuation and Earnings

This table compares Polymet Mining Corp and BHP Billiton PLC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Polymet Mining Corp N/A N/A -$4.68 million N/A N/A
BHP Billiton PLC $34.69 billion 2.81 $15.48 billion N/A N/A

BHP Billiton PLC has higher revenue and earnings than Polymet Mining Corp.

Dividends

BHP Billiton PLC pays an annual dividend of $1.08 per share and has a dividend yield of 3.0%. Polymet Mining Corp does not pay a dividend.

Institutional and Insider Ownership

4.4% of BHP Billiton PLC shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Polymet Mining Corp and BHP Billiton PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polymet Mining Corp 0 0 0 0 N/A
BHP Billiton PLC 1 5 1 0 2.00

BHP Billiton PLC has a consensus price target of $32.00, suggesting a potential downside of 12.54%. Given BHP Billiton PLC’s higher probable upside, analysts plainly believe BHP Billiton PLC is more favorable than Polymet Mining Corp.

Profitability

This table compares Polymet Mining Corp and BHP Billiton PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Polymet Mining Corp N/A -6.28% -3.31%
BHP Billiton PLC N/A N/A N/A

Summary

BHP Billiton PLC beats Polymet Mining Corp on 8 of the 8 factors compared between the two stocks.

Polymet Mining Corp Company Profile

PolyMet Mining Corp. (PolyMet) is a development-stage company. The Company is engaged in the exploration and development of natural resource properties. The Company’s sole mineral property is the NorthMet Project, which is located in St. Louis County in the Mesabi Iron Range mining district approximately 60 miles north of Duluth, Minnesota, the United States. The NorthMet Project consists of NorthMet copper-nickel-precious metals ore body, and the Erie Plant, a processing facility located approximately six miles from the ore body. The NorthMet Project covers a total of approximately 16,700 acres or over 25.9 square miles. The NorthMet mine site totals approximately 4,300 acres or over 6.5 square miles of leased mineral rights and the Erie Plant site totals approximately 12,400 acres or over 19.4 square miles of freehold land. The Erie Plant consists of crushing, grinding and milling facility.

BHP Billiton PLC Company Profile

BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.

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