PLS vs BHP: Which ASX 200 mining stock looks better today?

PLS vs BHP shares: Which ASX 200 mining stock is the better buy?

When you think Australian mining, two names jump to mind: PLS Group Ltd (ASX: PLS) and BHP Group Ltd (ASX: BHP). Both find themselves among the ASX 200’s go-to stocks for anyone keen on Aussie resources exposure, whether it’s booming lithium demand or diversified mining muscle. But with different focuses—PLS charging hard on the lithium front and BHP spanning iron ore, copper, and more—the comparison isn’t apples for apples. If you’re torn between PLS and BHP shares, let’s break down the case for each and see which one might be the better buy right now.

The case for PLS

PLS Group, previously known as Pilbara Minerals, has carved out a spot at the centre of the global lithium story. Its flagship project, the Pilgangoora Lithium-Tantalum Project in Western Australia, is among the world’s largest hard-rock lithium-tantalum deposits. The company also expanded overseas, adding the Colina lithium project in Brazil via an acquisition in 2025. PLS moved from exploration to production remarkably fast and keeps building its international sales channels as electric vehicle demand surges.

From the fundamentals, a few points stand out:

• Market cap: $11.77 billion—a sizeable player in its space but dwarfed by BHP’s heft.
• P/E ratio: 23.92, suggesting investors are paying up for the growth and excitement around lithium, even as the broader market cools on battery metals this year.
• Dividend yield: 1.3% (fully franked), offering returns, but modest compared to mature resource companies.

EPS sits at $0.161, with a dividend per share of $0.05, and 100% franking for Australian investors. Year to date, its shares are down 7.4%, showing how exposed PLS remains to commodity cycles and market sentiment.

The case for BHP

BHP Group is mining royalty—one of the world’s largest diversified mining giants with a vast portfolio that includes iron ore, copper, coal, and nickel. Since unifying its corporate structure in 2022, BHP’s focus has stayed on stable cash flows from its gigantic operations spanning Australia and overseas. With one of the deepest track records on the ASX, BHP is often viewed as a defensive core holding for income and scale.

Notable fundamentals include:

• Market cap: $306.37 billion—massively larger than PLS, reflecting global reach, asset variety, and institutional confidence.
• P/E ratio: 22.09, actually a touch lower than PLS’s (despite the size difference), highlighting steady profits and mature business appeal.
• Dividend yield: 3.98% (fully franked), making BHP an income hunter’s favourite among resource stocks.

EPS sits at $1.932, with dividends per share at $2.42, a hefty payout. Year to date, BHP shares have soared 39.0%, outstripping many on the ASX and dwarfing PLS’s recent performance.

Valuation comparison

Comparing key valuation metrics side by side:

Both companies’ earnings are fully franked—a plus for Australian dividend seekers. Interestingly, PLS’s P/E multiple is a touch above BHP’s, which might look surprising given BHP’s mature, stable cash flows. However, that premium suggests the market is betting on stronger growth for PLS versus more “steady as she goes” from BHP.

Recent share price momentum

Comparing recent share price performance up to 1 October 2026:

• PLS Group Ltd closed at $3.65, having dropped 5.4% on the day. Year to date, PLS is down 7.4%.
• BHP Group Ltd closed at $60.26, declining 0.9% on the day, but its year to date gain is an impressive 39.0%.

Both stocks have seen volatility, but BHP’s share price has gained serious momentum in 2026, while PLS has had a tougher year.

Which is the better buy?

If I had to pick one ASX 200 mining stock right now, my vote would go to BHP. The numbers just stack up better at the moment—BHP offers a much higher, fully franked dividend yield (3.98% versus 1.3%), which is a big plus with interest rates still high and investors returning to income stocks. BHP’s year to date share price run (+39.0%) also tells me the market is rewarding its scale and steady cash generation, especially compared to PLS Group’s negative year to date return.

PLS is exciting, no doubt, and will ride every updraft in lithium demand—the P/E premium reflects that optimism. But for income, stability, and sheer momentum, I think BHP is the clearer buy in this head-to-head. If I were seeking higher risk and growth, I might take a deeper look at PLS. But today, BHP’s fundamentals, dividend payout, and recent performance make it my pick of these two ASX mining heavyweights.

The post PLS vs BHP: Which ASX 200 mining stock looks better today? 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 recommended BHP Group. 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.