Critical Comparison: BHP Group (NYSE:BHP) versus Silver Standard Resources (NASDAQ:SSRM)

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

Profitability

This table compares BHP Group and Silver Standard Resources’ 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
Silver Standard Resources	12.66%	4.99%	3.66%

Analyst Recommendations

This is a breakdown of recent ratings for BHP Group and Silver Standard Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1	6	0	1	2.13
Silver Standard Resources	0	6	1	0	2.14

BHP Group currently has a consensus target price of $48.50, indicating a potential downside of 7.09%. Silver Standard Resources has a consensus target price of $12.55, indicating a potential downside of 42.43%. Given BHP Group’s higher probable upside, analysts plainly believe BHP Group is more favorable than Silver Standard Resources.

Valuation & Earnings

This table compares BHP Group and Silver Standard Resources”s 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	2.58	$9.02 billion	$4.40	11.86
Silver Standard Resources	$995.62 million	4.44	-$261.28 million	$0.78	27.95

BHP Group has higher revenue and earnings than Silver Standard Resources. BHP Group is trading at a lower price-to-earnings ratio than Silver Standard Resources, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

BHP Group has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Silver Standard Resources has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Institutional and Insider Ownership

3.8% of BHP Group shares are owned by institutional investors. Comparatively, 68.3% of Silver Standard Resources shares are owned by institutional investors. 0.0% of BHP Group shares are owned by insiders. Comparatively, 0.5% of Silver Standard Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Silver Standard Resources beats BHP Group on 9 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 Silver Standard Resources

SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.