BHP's FY24 edge: 19.7% ROE and 6.9% average yield support the blue-chip case. MIN profit fell to $125m despite 12.2% revenue growth. Alpha Score 74.
Alpha Score of 74 reflects strong overall profile with strong momentum, strong value, moderate quality, moderate sentiment.
Mineral Resources Ltd (ASX: MIN) and BHP Group Ltd (ASX: BHP) published FY24 scorecards that point in opposite directions. Mineral Resources grew revenue at a double-digit annual rate since 2021 while net profit fell to $125m. BHP's return on equity came in at 19.7%, against a 3.2% ROE at the Western Australian miner.
Rask's comparison treats the pair as different kinds of investments rather than two versions of the same trade.
Mineral Resources is the growth name, BHP the mature blue-chip payer, and the two call for separate scorecards.
Mineral Resources concentrates on lithium and iron ore in Western Australia. Its wholly owned subsidiary CSI Mining Services supplies capital infrastructure and operational expertise to external clients across Western Australia and Queensland, and into the Northern Territory. Rask flags the in-house engineering and construction capability as the company's point of difference against competitors, giving it control across the product development process.
Rask's growth checklist pairs revenue growth and profit growth, with return on equity as the conversion check. The FY24 numbers split. Revenue compounded at 12.2% a year to $5,278m by FY24. Net profit fell from $1,270m to $125m in the same window, a slide of roughly 90%, and ROE landed at 3.2%.
The services arm is the division priced on activity and contract rates rather than the spot price of lithium or iron ore, which makes it the revenue line least exposed to commodity prices. The figures cited do not separate CSI's contribution from the group totals, so the mix behind the top line is not visible in the numbers.
BHP Group, founded in 1885 and formerly BHP Billiton, produces commodities for energy use and manufacturing. The core is mineral exploration and production. BHP's operations split into copper and related minerals (gold, uranium, silver, zinc), iron ore, metallurgical coal and energy coal, with fertiliser as the newer line.
Size is part of the investment case. BHP is one of the largest companies in Australia, and Rask notes that most Australian investors already hold BHP exposure through ASX 200 index products or default superannuation options, without buying the shares directly. A position in Mineral Resources, by contrast, is an active pick.
BHP runs as the mature name, so Rask's scorecard pairs the debt/equity ratio with the dividend record before checking ROE. BHP reported a debt-to-equity ratio of 45.3% in FY24, and Rask's screen reads that as the balance-sheet check behind the payout. The dividend has averaged a 6.9% yield a year since 2020. ROE cleared the 10% floor Rask applies to the blue-chip label.
The two miners overlap on iron ore. The rest of the book splits between lithium at Mineral Resources and copper and coal at BHP. Price moves in those markets are tracked in AlphaScala's commodities analysis.
Return on equity is the one line the two scorecards share. In FY24 it stood at 19.7% for BHP and 3.2% for Mineral Resources. Rask notes the figures are a selection of metrics, not enough on their own to value either business or support an investment decision.
AlphaScala's scorecard rates BHP at 74 out of 100, a Moderate label within the Basic Materials sector, with the full breakdown on the BHP stock page.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.