Analyzing BHP Billiton Limited (BHP) & Gold Resource (GORO)
BHP Billiton Limited (NYSE: BHP) and Gold Resource (NASDAQ:GORO) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Earnings and Valuation
This table compares BHP Billiton Limited and Gold Resource’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BHP Billiton Limited||$39.02 billion||2.85||$19.39 billion||N/A||N/A|
|Gold Resource||$85.35 million||2.56||$20.77 million||N/A||N/A|
BHP Billiton Limited has higher revenue and earnings than Gold Resource.
This is a breakdown of current recommendations for BHP Billiton Limited and Gold Resource, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BHP Billiton Limited||5||6||6||0||2.06|
BHP Billiton Limited currently has a consensus target price of $34.61, indicating a potential downside of 17.24%. Given BHP Billiton Limited’s higher possible upside, analysts plainly believe BHP Billiton Limited is more favorable than Gold Resource.
This table compares BHP Billiton Limited and Gold Resource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BHP Billiton Limited||N/A||N/A||N/A|
Insider & Institutional Ownership
3.0% of BHP Billiton Limited shares are held by institutional investors. 0.0% of BHP Billiton Limited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
BHP Billiton Limited pays an annual dividend of $1.72 per share and has a dividend yield of 4.1%. Gold Resource does not pay a dividend.
BHP Billiton Limited beats Gold Resource on 8 of the 12 factors compared between the two stocks.
About BHP Billiton Limited
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.
About Gold Resource
Gold Resource Corporation is a mining company. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and dore containing gold and silver at the Aguila Project within its Oaxaca Mining Unit located in the southern state of Oaxaca, Mexico. The Company has two units in North America, the Oaxaca Mining Unit and the Nevada Mining Unit. The Company’s mineral properties are classified into two categories, such as Operating Properties and Exploration Properties. As of December 31, 2016, the Company had interest in nine properties, where over six of its properties, including one Operating Property and five Exploration Properties, are within its Oaxaca Mining Unit, which is located in the southern state of Oaxaca, Mexico. As of December 31, 2016, the Company also had three Exploration Properties within its Nevada Mining Unit located in south central Nevada’s Walker Lane Mineral Belt in the United States.
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