Better ASX 200 iron ore share to buy in June: Fortescue or BHP shares?

MotleyFool2023-06-07

Invest in BHP Group Ltd (ASX: BHP) shares or Fortescue Metals Group Ltd (ASX: FMG) shares in June? There’s a decent case to be made for both. Or for holding off to see where commodity prices head from...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBetter ASX 200 iron ore share to buy in June: Fortescue or BHP shares?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-06-07 03:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2023/06/07/better-asx-200-iron-ore-share-to-buy-in-june-fortescue-or-bhp-shares/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Invest in BHP Group Ltd (ASX: BHP) shares or Fortescue Metals Group Ltd (ASX: FMG) shares in June?\nThere’s a decent case to be made for both.\nOr for holding off to see where commodity prices head from...</p>\n\n<a href=\"https://www.fool.com.au/2023/06/07/better-asx-200-iron-ore-share-to-buy-in-june-fortescue-or-bhp-shares/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://www.fool.com.au/2023/06/07/better-asx-200-iron-ore-share-to-buy-in-june-fortescue-or-bhp-shares/","article_id":"2341894619","we_media_id":null,"thumbnails":["https://cdn-dfpai.nitrocdn.com/gJsEsVaCFesDAEYOdjncMdcuJdoeUsXv/assets/images/optimized/rev-7c4ad75/wp-content/uploads/2022/02/miners-2-16.9-1200x675.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2341894619","pubTimestamp":1686080700,"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"Invest in BHP Group Ltd  shares or Fortescue Metals Group Ltd  shares in June?There’s a decent case to be made for both.Or for holding off to see where commodity prices head from here.But holding off could well see the S&P/ASX 200 Index mining stocks climb higher into July.So, with that in mind, are Fortescue or BHP shares looking like the better option today?From a share price perspective, both of the ASX 200 iron ore shares have followed a fairly similar path over the past 12 months.The dividends are also similar, though again Fortescue holds the edge here, trading at a 9.6% trailing yield. That compares to an 8.9% trailing yield for BHP shares.BHP’s recently confirmed takeover of OZ Minerals Ltd  will give it a larger exposure to copper. Though it may take some time for any benefits to show up on the bottom line.What half-year results did the ASX 200 iron ore shares report?Well, Goldman Sachs has a very clear take on which ASX 200 iron ore share to buy right now.","collect":0,"end_time":0,"defaultTopTitle":"fool.com.au","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","BK4550":"红杉资本持仓","BK4552":"Archegos爆仓风波概念","NAV":"纳威司达","BK7095":"多种金属与采矿","GS":"高盛","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK7110":"铜","FCF":"第一联邦金融","BK4504":"桥水持仓","OZL.AU":"OZ MINERALS LTD","BK7507":"资源股","BK4127":"投资银行业与经纪业","BK7129":"钢铁","BK4168":"多种金属与采矿","BK7511":"ESG概念","BK7506":"金矿股","FFI.AU":"FFI Holdings Limited","BK4585":"ETF&股票定投概念","XJO.AU":"标普/澳交所 200指数","BK4533":"AQR资本管理(全球第二大对冲基金)","BHP":"必和必拓公司","BK4211":"区域性银行","BK7141":"包装食品与肉类","BHP.AU":"BHP GROUP LTD","FMG.AU":"FORTESCUE LTD"},"translate_title":"6月份买入ASX 200铁矿石股票更好：Fortescue还是必和必拓股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BHP.AU":1,"XJO.AU":1,"OZL.AU":1,"NAV":1,"FMG.AU":1,"FFI.AU":1,"FCF":1,"BHP":1,"GS":0.9},"content_text":"Invest in BHP Group Ltd (ASX: BHP) shares or Fortescue Metals Group Ltd (ASX: FMG) shares in June?\nThere’s a decent case to be made for both.\nOr for holding off to see where commodity prices head from here.\nBut holding off could well see the S&P/ASX 200 Index (ASX: XJO) mining stocks climb higher into July.\nSo, with that in mind, are Fortescue or BHP shares looking like the better option today?\nHow have Fortescue and BHP shares been performing?\nFrom a share price perspective, both of the ASX 200 iron ore shares have followed a fairly similar path over the past 12 months.\nSince this time last year, BHP shares are down 5.8%.\n\nThe Fortescue share price has held up a little better, down 3.8% over the full year.\n\nNow, that doesn’t include the two fully franked dividends both of the big miners paid out to shareholders.\nThe dividends are also similar, though again Fortescue holds the edge here, trading at a 9.6% trailing yield. That compares to an 8.9% trailing yield for BHP shares.\nBoth of the miners’ revenues are closely linked to the iron ore price. And both have an expanding footprint in copper, an important metal for the world’s march towards electrification.\nBHP’s recently confirmed takeover of OZ Minerals Ltd (ASX: OZL) will give it a larger exposure to copper. Though it may take some time for any benefits to show up on the bottom line.\nAs for Fortescue, it’s investing a sizeable amount of its revenue into the green hydrogen ambitions of Fortescue Future Industries (FFI).\nWhile I believe those ambitions may pay off handsomely in the years ahead, becoming an industry leader in green hydrogen production will require a lot more investment. And that investment money comes from shareholders.\nWith that in mind, I see Fortescue shares as carrying more risk than BHP shares over the medium term.\nWhat half-year results did the ASX 200 iron ore shares report?\nThe miners both reported their half-year results in February.\nWith the price of iron ore and copper having come off the boil during the reporting period, the figures were all down year on year.\nHere’s how BHP shares fared:\n\nRevenue down 16% to US$25.7 billion\nUnderlying earnings before interest, taxes, depreciation and amortisation (EBITDA) down 28% to US$13.2 billion\nProfit after tax down 32% to US$6.5 billion\nInterim dividend down 40% to 90 US cents per share\n\nAnd here’s what Fortescue reported for the half year:\n\nRevenue of US$7.84 billion, down 3.6%\nEBITDA declined 8.7% to US$4.4 billion\nNet profit after tax (NPAT) of US$2.4 billion, down 4.7%\nInterim dividend of 75 cents per share, down 13%\n\nBHP shares had the biggest pullback in profits and dividends.\nTo break the deadlock then, we defer to the analysts at Goldman Sachs.\nFortescue or BHP shares in June?\nWell, Goldman Sachs has a very clear take on which ASX 200 iron ore share to buy right now.\nThe broker recently confirmed its sell rating on Fortescue shares, with a target price of $15.80. That’s more than 22% below yesterday’s closing price of $20.36 a share.\nResponding to the miner’s recent quarterly update, Goldman believes Fortescue shares are overvalued compared to BHP shares, saying “the stock is trading at a premium to … BHP on our estimates”.\nGoldman estimates Fortescue stock trades at 1.4 net asset value (NAV) compared to 0.95 times for BHP shares.\nAs for free cash flow (FCF), the broker forecasts FY24 FCF of 4% for Fortescue compared to 7% for BHP.\nGoldman recently upgraded BHP from a neutral rating to a buy “based on attractive valuation after the recent ~15% drop in the stock price since January”.\nThe broker has a price target of $49 for BHP shares. That’s more than 12% above yesterday’s closing price of $43.60 a share.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2341894619"}