This content is only available within our institutional offering.
Sign in
This content is only available to commercial clients. Sign in if you have access or contact support@research-tree.com to set up a commercial account
This content is only available to commercial clients. Sign in if you have access or contact support@research-tree.com to set up a commercial account
Head-to-head
Rio Tinto plc (RIO:LON), 5,435 | BHP Group Ltd (BHP:LON), 2,363
- Published:
09 Jun 2022 -
Author:
Goel Jatinder JG | Brunet Sylvain SBr -
Pages:
43
Two diversified behemoths. Two dynamic groups standing at a strategic crossroads and facing up to the challenges of energy transition and ESG. Surely head-to-head this is a score draw?
As ever, the devil is in the details. We dive into shifting portfolio strategies, capex needs, current asset performance, the nitty-gritty of pipelines, ESG, and the enticing but tricky prospect of MandA.
While BHP''s pivot from petroleum gears it up for a fossil-fuel-lighter future, until Jansen Potash kicks in around 2027, diversification and growth look challenged. With the valuation premium well above five/ten-year average, we are Underperform. Rio is better placed, on its 2021 iron ore replacement cycle, clear capex budget, aluminium business and lithium/copper growth: Outperform.