BHP vs QBE in 2025: Which Stock Shows Stronger Value Potential?

April 30, 2025 04:38 PM AEST | By Team Kalkine Media
 BHP vs QBE in 2025: Which Stock Shows Stronger Value Potential?
Image source: Shutterstock

Highlights

  • BHP and QBE show strong financial fundamentals in 2025
  • Both stocks exhibit appealing dividend profiles for income-focused portfolios
  • Global operations and sector strengths drive long-term prospects

As we progress through 2025, investor interest remains high in blue-chip companies with strong global footprints. Among the leaders on the Australian Securities Exchange (ASX), BHP Group Ltd (ASX:BHP) and QBE Insurance Group Ltd (ASX:QBE) continue to capture attention, particularly for those seeking robust ASX dividend stocks.

BHP Group in 2025

BHP Group, a well-known global mining and resource conglomerate, has seen its share price decline by 4.4% year-to-date. Founded in 1885, the company operates across copper, iron ore, coal, and increasingly in fertiliser production. Despite short-term fluctuations in share price, BHP continues to showcase its status as a diversified and resilient business.

Key financial metrics from FY24 underscore its strength. The debt/equity ratio sits at 45.3%, indicating financial stability with more equity than debt. The company also reported a return on equity (ROE) of 19.7%, which comfortably exceeds the 10% benchmark commonly sought in mature businesses. Over the past five years, BHP has maintained an average dividend yield of 6.9% annually, aligning it with income-generating ASX dividend stocks.

For those looking to track performance relative to broader indices, BHP remains a significant contributor to the ASX200, cementing its position among Australia's top listed entities.

QBE Insurance Group Outlook

QBE Insurance, another established name originating in the late 1800s, has evolved into a global insurance powerhouse operating in 27 countries. Its share price is currently just 5.0% below its 52-week high—a sign of market confidence.

As of CY24, QBE reported a debt/equity ratio of 27.0%, further reflecting a sound capital structure. It delivered an ROE of 17.2%, suggesting effective use of shareholder capital. Although its average dividend yield of 2.8% since 2019 is lower than BHP's, it still appeals to investors seeking steady income.

With approximately 70% of revenue coming from outside Australia—mainly the United States and Europe—QBE's geographical diversification serves as a cushion against regional economic shifts.

Final Thoughts

BHP and QBE each bring unique strengths to the table—BHP with its commodity-driven scale and dividends, and QBE with its international insurance reach and stable capital metrics. In a year where global dynamics and interest rate movements play a crucial role, both companies stand out as noteworthy players in the ASX200 landscape.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.