Entree Gold (OTCMKTS:ERLFF) & BHP Group (NYSE:BHP) Critical Comparison

BHP Group (NYSE:BHP) and Entree Gold (OTCMKTS:ERLFF) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares BHP Group and Entree Gold’s 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
Entree Gold	N/A	N/A	-168.20%

Valuation & Earnings

This table compares BHP Group and Entree Gold”s top-line 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	3.41	$9.02 billion	N/A	N/A
Entree Gold	N/A	N/A	-$12.20 million	($0.08)	-19.88

BHP Group has higher revenue and earnings than Entree Gold.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BHP Group and Entree Gold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	1	7	1	0	2.00
Entree Gold	0	0	0	0	0.00

BHP Group currently has a consensus target price of $53.33, indicating a potential downside of 22.67%. Given BHP Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BHP Group is more favorable than Entree Gold.

Risk and Volatility

BHP Group has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Entree Gold has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Institutional & Insider Ownership

3.8% of BHP Group shares are owned by institutional investors. 0.0% of BHP Group shares are owned by insiders. Comparatively, 3.4% of Entree Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

BHP Group beats Entree Gold on 8 of the 9 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 Entree Gold

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.