RDS.B or BHP?

[aagha]

I've been getting more into oil as it takes a hit, as I think--as always--these drops are temporary and will result in 100% growth over the next 10 years.

In looking at dividends, and can get 7.43% w/ RDS, and 7.2% w/ BHP. Over the long term, BHP has performed better than RDS, but RDS is sitting on a ton more cash than BHP: RDS @ $21B+, and BHP @$8.8+

That said, what do folks think about what the better buy might be at this time?

[ChadR]

Since I bought RDS.B today, my vote is for RDS.B.

[ronn38]

I have full positions in both. But right now I have a limit order on the Dutch, not BP--not sure I have a great reason... just is :-)

Ronn

[Kerim]

Yahoo lists the ttm P/E for RDS at just below 12, while for BHP it is 48. Is that right? If so, then I'd look carefully at BHP's earnings to see whether that number is likely just transient. If it is not, then RDS would seem to be the better value.

Also, what to buy depends somewhat on your other portfolio needs. If you are already heavily exposed to oil, you might lean towards BHP for a little diversification into other commodities.

[Dash]

(09-03-2015, 01:23 PM)Kerim Wrote: Yahoo lists the ttm P/E for RDS at just below 12, while for BHP it is 48. Is that right? If so, then I'd look carefully at BHP's earnings to see whether that number is likely just transient. If it is not, then RDS would seem to be the better value.

Also, what to buy depends somewhat on your other portfolio needs. If you are already heavily exposed to oil, you might lean towards BHP for a little diversification into other commodities.

BBL (BHP) is experiencing the double wammy of today's economy: it's oil exposure is hurt by low oil prices, while it's mining operations are effected by low commodities prices and fears over China's slowing.

If you check their most recent presentation, it is clear that their YOY downturn is exclusively due to commodity and oil prices. These are out of BBL's control. Despite this BBL continues to lead its peers in EBIT margin, has actually lowered debt, and is now yielding ~7%.

I believe BBL could have more to go to reach bottom. But it's also currently being badly beaten down despite being an incredibly high quality wide moat business, with excellent management.

Long BBL