HP vs BHP Which Performs Better?

HP Inc. and BHP Group are two prominent companies in the stock market, each with their own unique characteristics and potential for investment. HP Inc. is a leading technology company known for its range of products, while BHP Group is a global resources company specializing in mining and petroleum. Both companies have shown resilience and growth over the years, making them attractive options for investors seeking to diversify their portfolio and capitalize on opportunities in the technology and resources sectors.

HP or BHP?

When comparing HP and BHP, 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 HP and BHP.

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. HP has a dividend yield of 3.23%, while BHP has a dividend yield of 5.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%. On the other hand, BHP reports a 5-year dividend growth of 7.38% year and a payout ratio of 97.14%.

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 HP P/E ratio at 11.94 and BHP's P/E ratio at 16.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HP P/B ratio is 11.20 while BHP's P/B ratio is 2.92.

Growth Investors:

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

Retail Investors:

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