Washington H Soul Pattinson vs BHP Group shares: which is better for beginners?

Looking to start your investing journey but not sure which ASX giant is a better fit? Washington H Soul Pattinson and Co Ltd (ASX: SOL) and BHP Group Ltd (ASX: BHP) are both popular with Aussie investors, but their profiles couldn’t be more different. Let’s dig into how these two stack up and which might be a smoother way in for share market newcomers.

The case for Washington H Soul Pattinson and Co

Washington H Soul Pattinson (“Soul Patts”) is one of Australia’s oldest listed investment companies, having started out in pharmacies but now a diversified investment house. Its portfolio covers listed stocks (including big stakes in businesses like TPG Telecom and New Hope), private companies, real assets, and more. After merging with Brickworks in 2025, Brickworks is now part of the group, further boosting its diversification. Soul Patts has a reputation for steady returns and aims to deliver both capital growth and reliably increasing dividends.

Looking at the fundamentals, I think Soul Patts stands out with:

• A low P/E ratio of 7.03 – making it look attractively priced compared to the wider market and (as we’ll see) BHP
• A franked dividend yield of 2.37%, not massive, but backed by a long and consistent history
• A YTD return of 22.7%, showing robust capital gains recently

And for those who like fully franked income, every dividend here is 100% franked—a plus for Aussie investors focused on after-tax returns.

The case for BHP

BHP is a global mining powerhouse, best known for producing iron ore, copper, coal and other commodities. It’s not just the biggest ASX stock by market cap, but also a name synonymous with resources investing. BHP’s profits—and share price—are tied pretty closely to global commodity prices, so it’s naturally a bit more volatile than your typical diversified investment company.

A few standout metrics on BHP’s side:

• A current dividend yield of 3.96%, fully franked
• A P/E ratio of 22.4, much higher than Soul Patts’—though that comes with sector caveats (resources are typically ‘boom and bust’)
• Year to date, BHP is up an impressive 39.5%, outpacing even Soul Patts’ recent gains

In short, BHP is a way to gain exposure to global mining and commodities, with the kind of scale and profitability that few can match on the ASX.

Valuation comparison

When I line these two up on key numbers, here’s how they look:

Metric	Soul Patts	BHP
P/E Ratio	7.03	22.40
Dividend Yield	2.37% (100% franked)	3.96% (100% franked)
Earnings per Share (EPS)	6.417	1.932
Market Cap	$17.13 billion	$310.39 billion
Year to Date Return	22.7%	39.5%

Note: Both companies report 100% franking on all recent dividends. Also, BHP’s earnings per share and relatively high P/E ratio reflect its resources focus, and its larger size shouldn’t be mistaken for a safer or “better” buy.

Recent share price performance

Comparing 21 August to 18 September 2026:

• BHP: Share price has risen from $65.16 to $61.05 in this recent stretch, with a volatile ride—including a jump as high as $67.40 and some sharp drops. Overall, BHP has delivered 39.5% YTD return as of the last recorded date.
• Soul Patts: Price moved from $44.38 to $45.08, trending higher but with smaller daily swings. Year to date, Soul Patts is up 22.7% as of 18 September 2026.
• Both shares have seen some volatility, but BHP’s larger gains have come with bigger day-to-day moves—worth keeping in mind if you’re new to the market.

Which is the better buy?

If I’m picking the company that’s friendliest for beginners, my vote goes to Washington H Soul Pattinson. Here’s why: Its low P/E signals a more conservative valuation, while its business is built on diversification—meaning no single sector or commodity determines its fate. While BHP’s juicy dividend yield and huge YTD gain might tempt, its performance goes hand-in-hand with the wild swings of global commodity prices. For someone just dipping their toes in, I’d favour the relative steadiness and broad exposure of Soul Patts. BHP, for all its scale, feels better suited to those ready for a bit more risk and a rollercoaster ride. Of course, both feature fully franked dividends and proven track records—but for a beginner, simplicity and sleep-at-night-factor really matter. Based on all the numbers and characteristics here, Soul Patts is my pick as a starter stock.

The post Soul Patts vs BHP: Which ASX share is best for beginners? appeared first on The Motley Fool Australia.

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• Up 52% and paying dividends: Are BHP shares a buy, hold, or sell today?

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 positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. 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.

Sunrise Energy Metals Ltd (ASX: SRL) just delivered one of the wildest sessions on the ASX this year. The $3 billion S&P/ASX 200 Index (ASX: XJO) stock rocketed 13% on Tuesday to $20.48, capping a 165% gain year to date and a staggering 354% surge over 12 months.

For context, the ASX 200 Index itself is actually sitting 0.2% lower than it was a year ago. So while the broader market has gone nowhere, this ASX 200 stock has gone stratospheric. Can it possibly keep this pace up?

What does Sunrise Energy actually do?

Sunrise Energy develops large-scale mining and mineral processing projects built around ion-exchange technology. This is a process used to extract valuable metals for the mining industry and to purify and recycle wastewater.

The real prize is the company’s flagship Syerston Project in central-west NSW, home to one of the world’s largest and highest-grade primary scandium and nickel-cobalt deposits.

Scandium is a critical mineral with genuine supply scarcity. Global demand is climbing fast, but there are barely any credible producers anywhere in the world. That scarcity is precisely why the market has gone berserk over this ASX 200 stock.

The August catalyst that changed everything

In August, Sunrise secured a conditional commitment for up to US$400 million (A$570 million) in 25-year debt financing for the Syerston Scandium Project. That’s not pocket change for a company this size.

Proposed US government funding could substantially cut development and financing risk. Sunrise has also flagged plans to pursue a US stock listing to tap global capital markets, subject to shareholder and regulatory sign-off.

The project’s capital estimate has been revised upward to A$450–475 million (US$315–333 million), reflecting an expanded scope and updated costs. However, a bigger project generally means a bigger payoff too.

The initial build targets 60 tonnes per annum of high-purity scandium oxide across an estimated 32-year mine life. Sunrise has also expanded its plans to include downstream refining capacity in the US, with future scope potentially tripling output down the track.

Early works and procurement are already underway, with first production targeted for late 2028.

A gravity check

Here’s where investors need to keep their feet on the ground. The ASX 200 stock peaked at $22.40 on 11 September and have cooled slightly since then. It’s likely just profit-taking after such an explosive run, rather than any change in the underlying story.

The bigger issue is coverage. Only one broker currently tracks Sunrise Energy, according to TradingView data. That single broker rates it a strong buy with a $20 price target, just below where the stock trades today.

Foolish takeaway

A 354% run in 12 months is the kind of move that demands scepticism, not blind faith. Sunrise has genuine scarcity value in scandium and a real funding pathway taking shape.

But with only one analyst willing to put a number on it, this remains a high-conviction, high-risk bet. Not a sure thing.

The post Best performing ASX 200 stock is up 350%. Can it keep rising? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Marc Van Dinther 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.

Broking house Morgans has released a report on the emerging companies on the ASX, noting that volatile share market conditions have hit the sector hard.

That said, they have identified a number of companies they believe could outperform over the next 12 months.

I’ve focused in on three in particular which Morgans believes will rerate substantially.

Let’s see who they like.

Megaport Ltd (ASX: MP1)

Megaport acquired the Latitude compute-as-a-service company during FY26 adding its services into Megaport’s high-speed network.

Morgans said the acquisition had “materially changed” Megaport’s business, winning a large number of contracts in the second half of the financial year, “and in our view more to come”.

The broker said it expects earnings to increase rapidly:

FY27 will be a year of delivering and reinvesting a larger than usual share of incremental earnings back into the business, but we estimate $624m EBITDA in FY28 with the full run-rate of strategic contract wins (announced to date) and GPU pool still ramping. This further lifts to $770m in FY29, once the GPU pool has stabilised, a 10x increase from the $77m EBITDA in FY26.

Morgans said reinvestment into Megaport’s sales team should help accelerate revenue growth in FY27, while building out an ecosystem of services should also help.

The broker said they “remain positive on the structural thematics and AI and cloud momentum.

Morgans has a price target of $26.40 on Megaport shares.

Nextdc Ltd (ASX: NXT)

The broker said FY26 was a significant year for Nextdc, with contracted megawatts up 3.5x.

Morgans predicts EBITDA to increase from $250 million in FY26 to more than $1.1 billion by FY30, “but [Morgans] also [flags] scope for further acceleration to NXT’s current expected deployment profile”.

The broker said Nextdc was trading at earnings ratios “materially cheaper” than its peers.

Morgans has a price target of $23.45 on Nextdc shares.

Superloop Ltd (ASX: SLC)

Morgans says Superloop is gaining market share in the broadband market, with strong momentum in late FY26 understood to have continued into the current financial year.

They added:

On that basis, our analysis suggests SLC could be adding close to 9% of new NBN orders to their customer base vs its ~5% market share. We think this is in an environment where churn is elevated due to price hikes being implemented in July and we consider SLC to have emerged as a net-beneficiary of this trend.

Morgans has a price target of $4.15 on Superloop shares.

The post Morgans tips 3 ASX 200 companies to rise between 35% and 106% appeared first on The Motley Fool Australia.

More reading

• What does Anthropic’s $32b Queensland data centre mean for ASX AI shares?
• 2 ASX shares tipped to surge 70% or more in the next 12 months
• Goodman Group vs Nextdc: Which stock is the better buy today?
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England has positions in Megaport and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.