Comparing BHP Group (NYSE:BHP) & Entree Gold (OTCMKTS:ERLFF)

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

Volatility and Risk

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

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares Entree Gold and BHP Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entree Gold	N/A	N/A	-$12.20 million	($0.08)	-20.25
BHP Group	$51.26 billion	3.41	$9.02 billion	N/A	N/A

BHP Group has higher revenue and earnings than Entree Gold.

Profitability

This table compares Entree Gold and BHP Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entree Gold	N/A	N/A	-168.20%
BHP Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for Entree Gold and BHP Group, as reported by MarketBeat.

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

BHP Group has a consensus price target of $53.33, indicating a potential downside of 22.47%. Given BHP Group’s stronger consensus rating and higher probable upside, analysts plainly believe BHP Group is more favorable than Entree Gold.

Summary

BHP Group beats Entree Gold on 8 of the 9 factors compared between the two stocks.

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.

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.