WallStSmart

BHP Group Limited (BHP)vsReliance Steel & Aluminum Co (RS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BHP Group Limited generates 264% more annual revenue ($53.99B vs $14.84B). BHP leads profitability with a 19.0% profit margin vs 5.4%. RS appears more attractively valued with a PEG of 2.29. BHP earns a higher WallStSmart Score of 65/100 (C+).

BHP

Buy

65

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 3.3Quality: 5.0

RS

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 4.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BHPSignificantly Overvalued (-84.5%)

Margin of Safety

-84.5%

Fair Value

$43.18

Current Price

$79.30

$36.12 premium

UndervaluedFair: $43.18Overvalued
RSSignificantly Overvalued (-46.2%)

Margin of Safety

-46.2%

Fair Value

$246.42

Current Price

$359.45

$113.03 premium

UndervaluedFair: $246.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BHP5 strengths · Avg: 9.0/10
Market CapQuality
$201.45B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

Free Cash FlowQuality
$4.31B8/10

Generating 4.3B in free cash flow

RS5 strengths · Avg: 8.6/10
Altman Z-ScoreHealth
4.4110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

EPS GrowthGrowth
36.4%8/10

Earnings expanding 36.4% YoY

Areas to Watch

BHP1 concerns · Avg: 2.0/10
PEG RatioValuation
5.952/10

Expensive relative to growth rate

RS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Profit MarginProfitability
5.4%3/10

5.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : BHP

The strongest argument for BHP centers on Market Cap, Operating Margin, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : RS

The strongest argument for RS centers on Altman Z-Score, Debt/Equity, Price/Book. Revenue growth of 15.5% demonstrates continued momentum.

Bear Case : BHP

The primary concerns for BHP are PEG Ratio.

Bear Case : RS

The primary concerns for RS are PEG Ratio, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

BHP profiles as a mature stock while RS is a growth play — different risk/reward profiles.

RS carries more volatility with a beta of 0.87 — expect wider price swings.

RS is growing revenue faster at 15.5% — sustainability is the question.

BHP generates stronger free cash flow (4.3B), providing more financial flexibility.

Bottom Line

BHP scores higher overall (65/100 vs 63/100), backed by strong 19.0% margins and 10.8% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

BHP Group Limited

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.

Reliance Steel & Aluminum Co

BASIC MATERIALS · STEEL · USA

Reliance Steel & Aluminum Co. is a metal service center company. The company is headquartered in Los Angeles, California.

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