Critical Analysis: BHP Group (NYSE:BHP) vs. Hycroft Mining (NASDAQ:HYMC)

Hycroft Mining (NASDAQ:HYMC) and BHP Group (NYSE:BHP) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Insider and Institutional Ownership

7.4% of Hycroft Mining shares are owned by institutional investors. Comparatively, 3.8% of BHP Group shares are owned by institutional investors. 1.3% of Hycroft Mining shares are owned by company insiders. Comparatively, 0.0% of BHP Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Hycroft Mining and BHP Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hycroft Mining	N/A	N/A	-$60.90 million	($1.62)	-18.36
BHP Group	$51.26 billion	3.16	$9.02 billion	N/A	N/A

BHP Group has higher revenue and earnings than Hycroft Mining.

Risk & Volatility

Hycroft Mining has a beta of 2.64, suggesting that its stock price is 164% more volatile than the S&P 500. Comparatively, BHP Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Hycroft Mining and BHP Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hycroft Mining	N/A	N/A	-27.55%
BHP Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hycroft Mining and BHP Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hycroft Mining	1	0	0	0	1.00
BHP Group	1	5	1	2	2.44

BHP Group has a consensus price target of $56.00, suggesting a potential downside of 12.34%. Given BHP Group’s stronger consensus rating and higher possible upside, analysts plainly believe BHP Group is more favorable than Hycroft Mining.

Summary

BHP Group beats Hycroft Mining on 7 of the 10 factors compared between the two stocks.

About Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.

About BHP Group

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. The company was founded in 1851 and is headquartered in Melbourne, Australia.