BHP Billiton PLC (NYSE: BBL) and Turquoise Hill Resources (NYSE:TRQ) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional and Insider Ownership

4.1% of BHP Billiton PLC shares are held by institutional investors. Comparatively, 32.9% of Turquoise Hill Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

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.

Analyst Recommendations

This is a summary of recent recommendations for BHP Billiton PLC and Turquoise Hill Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton PLC 1 2 1 0 2.00
Turquoise Hill Resources 0 3 3 0 2.50

BHP Billiton PLC presently has a consensus target price of $38.00, suggesting a potential upside of 4.63%. Turquoise Hill Resources has a consensus target price of $5.00, suggesting a potential upside of 62.87%. Given Turquoise Hill Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Turquoise Hill Resources is more favorable than BHP Billiton PLC.

Profitability

This table compares BHP Billiton PLC and Turquoise Hill Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BHP Billiton PLC N/A N/A N/A
Turquoise Hill Resources 14.20% 1.60% 1.01%

Earnings & Valuation

This table compares BHP Billiton PLC and Turquoise Hill Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BHP Billiton PLC $38.66 billion 2.50 $19.37 billion N/A N/A
Turquoise Hill Resources $892.02 million 6.93 $159.41 million $0.06 51.18

BHP Billiton PLC has higher revenue and earnings than Turquoise Hill Resources.

Risk & Volatility

BHP Billiton PLC has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Turquoise Hill Resources has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Summary

Turquoise Hill Resources beats BHP Billiton PLC on 8 of the 12 factors compared between the two stocks.

About BHP Billiton PLC

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.

About Turquoise Hill Resources

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).

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