BHP Group Limited vs Rio Tinto Group
BHP and RIO are evenly matched across key metrics.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Highly correlated — these stocks tend to move together. Limited diversification benefit.
Fundamentals
| Metric | BHP | RIO |
|---|---|---|
| Market Cap | $225.9B | $173.0B |
| P/E Ratio | 22.1x | 17.5x |
| Forward P/E | 16.7x | 12.0x |
| P/B | 4.48x | 2.78x |
| Dividend Yield | 2.99% | 3.78% |
| Beta | 0.80 | 0.63 |
Quantitative Metrics
| Metric | BHP | RIO |
|---|---|---|
| DCF Fair Value | $19.51 | $28.90 |
| DCF Upside | -75.0% | -70.9% |
| Piotroski F | 4/9 | 4/9 |
| Altman Z | 3.78 | 3.01 |
| Beneish M | -2.88 | — |
| FCF Yield | 4.57% | 2.58% |
| Net Debt/EBITDA | 0.3x | 0.6x |
| ROIC | 17.2% | 11.5% |
| WACC | 9.2% | 8.3% |
| ROIC – WACC | 7.9pp | 3.2pp |
| Gross Margin | 71.7% | 57.4% |
| Net Margin | 17.6% | 17.3% |
| Rev Growth YoY | -7.9% | 7.4% |
| Sharpe (1Y) | 2.01 | 2.33 |
| Max Drawdown 3Y | -37.2% | -24.2% |
| FCF Payout Ratio | 69% | 137% |
BHP Price
RIO Price
ETF Exposure
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
BHP vs RIO: Head-to-Head Analysis
BHP Group Limited (BHP) and Rio Tinto Group (RIO) represent two companies in the Basic Materials sector. Our quantitative Tale of the Tape shows these companies are evenly matched across profitability, valuation, and risk metrics.
In terms of capital efficiency, BHP generates a return on invested capital (ROIC) of 17.2% compared to RIO's 11.5%. This suggests BHP is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between BHP and RIO is 0.860, indicating these stocks move closely together, offering limited diversification benefit in a portfolio context.
BHP appears in 8 ETFs tracked by SecuritiesDB, while RIO appears in 10 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, BHP or RIO?
Our quantitative analysis compares BHP and RIO across nine fundamental dimensions. BHP and RIO are evenly matched across key metrics. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are BHP and RIO correlated?
The 252-day correlation between BHP and RIO is 0.860. They are highly correlated, meaning they tend to move together.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.