Critical Analysis: Turquoise Hill Resources (IVN) & BHP Billiton PLC (BBL)
Turquoise Hill Resources (NYSE: IVN) and BHP Billiton PLC (NYSE:BBL) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Valuation and Earnings
This table compares Turquoise Hill Resources and BHP Billiton PLC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Turquoise Hill Resources||N/A||N/A||N/A||N/A||N/A|
|BHP Billiton PLC||$38.66 billion||2.48||$19.37 billion||N/A||N/A|
BHP Billiton PLC has higher revenue and earnings than Turquoise Hill Resources.
This table compares Turquoise Hill Resources and BHP Billiton PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turquoise Hill Resources||-0.19%||1.09%||-0.01%|
|BHP Billiton PLC||N/A||N/A||N/A|
This is a breakdown of current ratings and price targets for Turquoise Hill Resources and BHP Billiton PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turquoise Hill Resources||0||0||0||0||N/A|
|BHP Billiton PLC||1||2||1||0||2.00|
BHP Billiton PLC has a consensus price target of $38.00, suggesting a potential upside of 5.64%. Given BHP Billiton PLC’s higher possible upside, analysts plainly believe BHP Billiton PLC is more favorable than Turquoise Hill Resources.
BHP Billiton PLC pays an annual dividend of $1.66 per share and has a dividend yield of 4.6%. Turquoise Hill Resources does not pay a dividend.
Institutional & Insider Ownership
4.1% of BHP Billiton PLC shares are owned 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.
BHP Billiton PLC beats Turquoise Hill Resources on 7 of the 8 factors compared between the two stocks.
Turquoise Hill Resources Company Profile
Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).
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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