BHPNewmont

BHP vs Newmont

This page compares BHP and Newmont, examining their business models, financial performance, and market context to explain core differences. It presents neutral, accessible information about each compa...

Why It's Moving

BHP

BHP Shares Gain Momentum Amid Broader Mining Sector Resilience.

  • Stock up 1.73% to $58.00 from Tuesday's open, signaling short-term buying interest in a stable mining environment.
  • Attractive 3.81% dividend yield draws income-focused investors amid peer comparisons showing BHP's solid P/E of 14.52.
  • Strong balance sheet metrics like 1.46 current ratio and 10.47 interest coverage underscore financial resilience versus rivals.
Sentiment:
๐ŸƒBullish
Newmont

Newmont shares surge amid strong technical momentum and dividend payout ahead.

  • Stock gained in 7 of last 10 days, up 9.35% over two weeks with 29 million shares tradedโ€”nearly double the prior dayโ€”indicating building bullish momentum.
  • Q3 delivered 1.42M gold ounces produced, $1.6B record free cash flow, and $640M from asset sales, enabling $2B debt reduction to near-zero net debt.
  • Board affirmed $0.25 dividend for Q3, payable Dec 22, underscoring commitment to shareholder returns despite ongoing divestitures like the Coffee Project sale.
Sentiment:
๐ŸƒBullish

Which Baskets Do They Appear In?

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Inflation Hedge Basket

Looking to protect your money from rising prices? This collection features companies that own real, physical assets from gold mines to global infrastructure. Professional analysts have selected these stocks specifically for their ability to maintain and potentially increase in value during inflationary periods.

Published: June 17, 2025

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Investment Analysis

BHP

BHP

BHP

Pros

  • BHP reported strong financial performance in 2025 with resilient returns supported by safe operations and rigorous cost control.
  • The company is a global diversified miner with major assets including Pilbara iron ore and Escondida copper, enhancing its resource base.
  • BHP offers a solid dividend yield near 5.4%, reflecting attractive shareholder returns and capital discipline.

Considerations

  • Revenue declined by almost 8% in 2025 compared to the previous year, indicating recent top-line pressure.
  • BHP's nickel business is currently on care and maintenance due to low nickel prices, reducing commodity diversification.
  • The stock trades below its historical 52-week range highs, and has a medium uncertainty economic moat rating, reflecting competitive challenges.

Pros

  • Newmont is the world's largest gold miner with a goal to increase production to 6 million ounces annually by 2028, supporting growth potential.
  • The company has robust financial health and a track record of returning value through dividends and share buybacks.
  • Newmont operates globally with diversified assets in multiple countries, reducing geographical and operational risk.

Considerations

  • Newmont currently faces challenges in rebuilding investor confidence amid market skepticism about gold price sustainability.
  • Its valuation metrics indicate a relatively higher price-to-earnings and price-to-sales ratio compared to sector averages, suggesting limited valuation upside.
  • There is considerable tactical risk due to reliance on volatile gold prices and operational exposure in politically sensitive regions.

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