Comparing BHP Group (NYSE:BHP) and OR Royalties (NYSE:OR)

BHP Group (NYSE:BHP) and OR Royalties (NYSE:OR) 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, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares BHP Group and OR Royalties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BHP Group	N/A	N/A	N/A
OR Royalties	60.72%	10.67%	9.48%

Risk & Volatility

BHP Group has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for BHP Group and OR Royalties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1	5	1	2	2.44
OR Royalties	0	2	5	2	3.00

BHP Group presently has a consensus target price of $56.00, indicating a potential downside of 24.58%. OR Royalties has a consensus target price of $38.25, indicating a potential downside of 9.51%. Given OR Royalties’ stronger consensus rating and higher possible upside, analysts clearly believe OR Royalties is more favorable than BHP Group.

Dividends

BHP Group pays an annual dividend of $2.37 per share and has a dividend yield of 3.2%. OR Royalties pays an annual dividend of $0.22 per share and has a dividend yield of 0.5%. OR Royalties pays out 27.8% of its earnings in the form of a dividend. OR Royalties has raised its dividend for 1 consecutive years.

Valuation & Earnings

This table compares BHP Group and OR Royalties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	$51.26 billion	3.68	$9.02 billion	N/A	N/A
OR Royalties	$243.65 million	32.53	$16.27 million	$0.79	53.51

BHP Group has higher revenue and earnings than OR Royalties.

Institutional & Insider Ownership

3.8% of BHP Group shares are owned by institutional investors. Comparatively, 68.5% of OR Royalties shares are owned by institutional investors. 0.0% of BHP Group shares are owned by insiders. Comparatively, 0.6% of OR Royalties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

OR Royalties beats BHP Group on 11 of the 15 factors compared between the two stocks.

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.

About OR Royalties

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.