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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.
