PLS Group vs Mineral Resources: ASX mining shares compared

PLS Group Ltd vs Mineral Resources shares

Looking to invest in a major ASX miner, but torn between PLS Group Ltd (ASX: PLS) and Mineral Resources Ltd (ASX: MIN)? It’s a fair dilemma. Both companies sit at the heart of Australia’s mining boom and have big ambitions in lithium—a commodity crucial to clean energy and electrification. Yet, when it comes down to fundamentals, recent performance, and dividends, these two miners take noticeably different routes to delivering shareholder returns. Here’s how I see the strengths and weaknesses stack up between PLS Group and Mineral Resources shares.

The case for PLS Group

PLS (formerly Pilbara Minerals) has carved out a position as one of Australia’s most prominent pure-play lithium producers. Its flagship Pilgangoora mine in Western Australia is among the world’s largest hard-rock lithium-tantalum projects, while a 2025 move into Brazil’s Colina lithium reserve highlights its appetite for global expansion. The company’s laser-focus on lithium could appeal to investors banking on strong long-term demand for battery metals.

Looking at the fundamentals, PLS Group currently trades on a price-to-earnings (P/E) ratio of 23.98 and sports a fully franked dividend yield of 1.29%. Earnings per share stand at $0.161, with a market cap of $12.45 billion. The company has paid out fully franked dividends, with the most recent being $0.14 and $0.11 per share in 2023, according to its published dividend history. The shares have struggled so far this year, with a year-to-date (YTD) return of -7.1%. For those with conviction in a lithium-led recovery, PLS stands out as a focused, growth-oriented operator.

The case for Mineral Resources

Mineral Resources offers a different proposition. It’s not just a miner—it’s a mining services provider and a significant player in both lithium and iron ore. Its operations range from mining its own resources in the Pilbara and Goldfields to offering pit-to-port logistics and infrastructure services to third parties. This business model gives it more earnings diversity than a pure-play lithium miner like PLS. Mineral Resources has also laid out bold plans to become a leading lithium hydroxide and battery producer, leveraging vertical integration for cost advantage.

On the numbers, Mineral Resources currently trades on a significantly lower P/E ratio of 9.81, which reflects a much higher earnings per share figure at $5.338. Its dividend yield is 1.58% (fully franked), and its market cap comes in at $10.38 billion. The company has a lengthy track record of paying fully franked dividends, with the most recent totalling $0.90 per share across two payments in 2024. Despite a negative YTD return of -2.1%, this is a much gentler slide than PLS Group over the same period.

Valuation comparison

There are some clear contrasts in the key figures:

Recent share price performance

Comparing recent share price action up to 30 September:

• PLS Group Ltd closed at $3.86, down 0.26% on the day, and has lost 7.1% year-to-date.
• Mineral Resources Ltd closed at $52.29, down 0.19% on the day, and is down 2.1% for the year to date.

So far in 2026, both have underperformed, but Mineral Resources shares have held up better than PLS Group on a year-to-date basis.

Which is the better buy?

If I had to pick between the two today, I’d lean toward Mineral Resources. Here’s why: Its P/E ratio is much lower than PLS Group’s, suggesting the market is either underpricing its earnings or sees more stability and less risk in its diversified business. Mineral Resources also offers a slightly higher, fully franked dividend yield and a proven record of returning cash to shareholders. The earnings per share difference is striking, and its year-to-date performance has held up better in a tough environment. While PLS Group has explosive potential if lithium prices soar (and a strong focus for those after pure lithium exposure), I think Mineral Resources’ mix of mining and services gives it the resilience and income I personally prefer in volatile cycles.

The post PLS Group vs Mineral Resources: ASX mining shares compared appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.