Rio Tinto plc (ADR) (RIO), or BHP Billiton plc (ADR) (BBL): Should I Buy Either of These Two Stocks?

Which share should I buy?
BHP Billiton plc (ADR) (NYSE:BBL)’s major commitment to oil and gas is something to consider if you want a diversified portfolio, as it could take you overweight on oil if you also hold shares in a supermajor like BP or Royal Dutch Shell plc (ADR) (NYSE:RDS.A).

On the other hand, BHP does offer exposure to all the major industrial commodities in one share, which may be attractive, depending on your requirements.

I prefer Rio’s focus on mining, rather than petroleum, and I like its growing emphasis on copper. For all of these reasons, Rio is my pick as a buy — but I believe that both companies represent good value for money and provide an attractive way of earning an income from commodities.

2013’s top income stock?
Despite the attractive incomes offered by Rio Tinto plc (ADR) (NYSE:RIO) and BHP Billiton, the U.K. utility sector remains one of the best places to find reliable, high-yielding income stocks.

The Motley Fool’s top analysts have looked closely at all of the listed U.K. utility companies and identified one FTSE 100 utility share which offers a 5.7% dividend yield, and which they believe may be undervalued by up to 20%.

The article Should I Buy Rio Tinto or BHP Billiton? originally appeared on Fool.com and is written by Roland Head.

Roland Head owns shares in Rio Tinto, BP, and Royal Dutch Shell. The Motley Fool has no position in any of the stocks mentioned.

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