The BHP Group Ltd (ASX: BHP) share price has been under pressure in 2020. It's certainly not the only ASX 200 share to fall more than 20% this year amid a bear market.
Right alongside BHP is another blue-chip in National Australia Bank Ltd (ASX: NAB). NAB shares are down 36.01% and in a trading halt as the bank tries to raise $3.5 billion from shareholders.
NAB reported a $1.4 billion half-year profit on Monday – a 51.4% drop compared to the previous year. That's a sign that the coronavirus pandemic could be beginning to hit the core of the Aussie economy.
So, which is a better buy in 2020: BHP shares or NAB shares?
Why BHP shares can outperform NAB shares in 2020
It's worth noting both of these ASX companies are enormous. Both employ tens of thousands of Aussies and are vital to the economy.
That importance is perhaps exacerbated by the COVID-19 uncertainty. Large employers like NAB and BHP are critical to keeping Aussies employed and money flowing through the economy.
However, both BHP shares and NAB shares have been understandably hammered. On first glance, I would say that the mining sector looks to be more vulnerable to this pandemic than the ASX banks.
Slowing demand from countries like the United States and China could really hurt BHP's earnings. Meanwhile, Aussie businesses are likely to lean on the banks for extra support in 2020.
However, it can pay to dig a little deeper. There are signs that China is recovering well and demand could be maintained. The Australian government could also look to infrastructure projects to stimulate the economy, which may require more steel and therefore strong demand for BHP materials.
That's good news for BHP shares. Meanwhile, NAB is staring at higher loan impairments and a potentially weaker housing market in 2020.
Foolish takeaway
On balance, there are definitely arguments in favour of both shares. I think the key is that strong ASX dividend shares can deliver for shareholders despite being in wildly different sectors.
Buying a diversified blue-chip portfolio of ASX shares and holding them is a tried and tested strategy. No one knows where the market is going, but we can try and maximise our chances of long-term success.
