BHP Group (NYSE:BHP – Get Free Report) and Entree Gold (OTCMKTS:ERLFF – Get Free Report) 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.
Analyst Ratings
This is a breakdown of current ratings and target prices for BHP Group and Entree Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BHP Group | 1 | 7 | 1 | 0 | 2.00 |
| Entree Gold | 0 | 0 | 0 | 0 | 0.00 |
BHP Group presently has a consensus target price of $53.33, indicating a potential downside of 22.47%. Given BHP Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BHP Group is more favorable than Entree Gold.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BHP Group | $51.26 billion | 3.41 | $9.02 billion | N/A | N/A |
| Entree Gold | N/A | N/A | -$12.20 million | ($0.08) | -20.25 |
BHP Group has higher revenue and earnings than Entree Gold.
Profitability
This table compares BHP Group and Entree Gold’s 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 |
| Entree Gold | N/A | N/A | -168.20% |
Insider & Institutional Ownership
3.8% of BHP Group shares are owned by institutional investors. 0.0% of BHP Group shares are owned by insiders. Comparatively, 3.4% of Entree Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
BHP Group has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Entree Gold has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Summary
BHP Group beats Entree Gold on 8 of the 9 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 Entree Gold
Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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