BHP vs HP Which Is More Favorable?

BHP Group Limited and HP Inc. are two well-known companies with global presence in different industries. BHP is a leading mining company specializing in the extraction of minerals, while HP is a technology company known for its computer hardware and software products. Both companies have a significant impact on the stock market due to their size and influence in their respective sectors. Investors looking for diverse investment opportunities may consider comparing BHP and HP stocks for potential growth and stability.

BHP or HP?

When comparing BHP and HP, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BHP and HP.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BHP has a dividend yield of 5.65%, while HP has a dividend yield of 3.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BHP reports a 5-year dividend growth of 7.38% year and a payout ratio of 97.14%. On the other hand, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BHP P/E ratio at 16.64 and HP's P/E ratio at 11.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BHP P/B ratio is 2.92 while HP's P/B ratio is 11.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BHP has seen a 5-year revenue growth of 0.31%, while HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BHP's ROE at 18.25% and HP's ROE at -1122.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $51.45 for BHP and $34.34 for HP. Over the past year, BHP's prices ranged from $50.90 to $69.11, with a yearly change of 35.78%. HP's prices fluctuated between $27.43 and $39.80, with a yearly change of 45.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.