The two largest companies by market capitalisation in the ASX materials sector are Fortescue Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP).
They have been popular investment options for many years thanks to their blue-chip status.
Much of the discourse around the ASX materials sector in the past year has centred around struggling commodity prices and geopolitical uncertainty.
Despite this, Fortescue and BHP shares have risen in the last 12 months.
Lets see how much investors have cashed in.
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BHP Group
BHP is the second largest company listed on the ASX by market capitalisation.
It is one of the world's top producers of major commodities including iron ore, copper, and metallurgical coal.
Like much of the ASX, BHP shares slumped during April on the back of tariff turmoil and geopolitical uncertainty.
Historically low iron ore prices have also created headwinds for BHP shares.
The company pointed to this as one of the key contributors to the 26% profit slump in FY25.
Despite these headwinds, BHP shares have risen 6.73% in the last 12 months.
Hypothetically, an investment of $10,000 worth of BHP shares a year ago would now be worth $10,673.
A $10,000 investment would also have earned approximately $490 in total dividends.
Fortescue
Fortescue is an iron ore production and exploration company in the Pilbara region of Western Australia.
Because of its focus on iron ore, it has more direct exposure to the commodity prices.
Despite the record shipments, FY 2025 revenue was down 15% on FY 2024 to US$15.5 billion.
Fortescue also sank to 52 week lows back in April, but since then have lifted more than 30%.
Zooming out further, Fortescue shares have risen 16.11% in the last year.
A hypothetical investment of $10,000 a year ago would now be worth roughly $11,611 with an additional $678.70 in total dividends.
Should you buy Fortescue or BHP shares?
It seems brokers are largely valuing these two ASX materials shares as overvalued after their recent share price gains.
Broker Bell Potter has a price target of $28.41 on BHP shares which is more than 30% lower than its current share price.
Meanwhile, the broker has a "hold" recommendation on Fortescue shares with a price target of $17.05.
Based on this target the broker believes it is trading slightly above fair value.
