Contrasting BHP Billiton Limited (BHP) and A-Mark Precious Metals (AMRK)
A-Mark Precious Metals (NASDAQ: AMRK) and BHP Billiton Limited (NYSE:BHP) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Valuation and Earnings
This table compares A-Mark Precious Metals and BHP Billiton Limited’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|A-Mark Precious Metals||$7.40 billion||0.02||$10.53 million||$0.97||18.41|
|BHP Billiton Limited||$39.02 billion||2.93||$19.39 billion||N/A||N/A|
BHP Billiton Limited has higher revenue and earnings than A-Mark Precious Metals.
Risk and Volatility
A-Mark Precious Metals has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, BHP Billiton Limited has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. BHP Billiton Limited pays an annual dividend of $1.72 per share and has a dividend yield of 4.0%. A-Mark Precious Metals pays out 33.0% of its earnings in the form of a dividend.
Insider and Institutional Ownership
19.9% of A-Mark Precious Metals shares are owned by institutional investors. Comparatively, 3.0% of BHP Billiton Limited shares are owned by institutional investors. 43.0% of A-Mark Precious Metals shares are owned by company insiders. Comparatively, 0.0% of BHP Billiton Limited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and target prices for A-Mark Precious Metals and BHP Billiton Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|A-Mark Precious Metals||0||1||1||1||3.00|
|BHP Billiton Limited||5||6||6||0||2.06|
A-Mark Precious Metals currently has a consensus target price of $21.53, suggesting a potential upside of 20.52%. BHP Billiton Limited has a consensus target price of $34.61, suggesting a potential downside of 19.50%. Given A-Mark Precious Metals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe A-Mark Precious Metals is more favorable than BHP Billiton Limited.
This table compares A-Mark Precious Metals and BHP Billiton Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|A-Mark Precious Metals||0.09%||10.08%||1.40%|
|BHP Billiton Limited||N/A||N/A||N/A|
A-Mark Precious Metals Company Profile
A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.
BHP Billiton Limited Company Profile
BHP Billiton Limited 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. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.
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