Alcoa Corp (AA)vsRio Tinto ADR (RIO)
AA
Alcoa Corp
$55.08
-5.60%
BASIC MATERIALS · Cap: $18.15B
RIO
Rio Tinto ADR
$100.69
-4.47%
BASIC MATERIALS · Cap: $168.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 355% more annual revenue ($57.64B vs $12.65B). RIO leads profitability with a 17.3% profit margin vs 8.2%. RIO appears more attractively valued with a PEG of 5.69. RIO earns a higher WallStSmart Score of 54/100 (C-).
AA
Hold49
out of 100
Grade: D+
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AA.
Margin of Safety
+24.5%
Fair Value
$129.94
Current Price
$100.69
$29.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 35 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Revenue declined 5.2%
Earnings declined 22.7%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AA
The strongest argument for AA centers on P/E Ratio, Price/Book.
Bull Case : RIO
The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : AA
The primary concerns for AA are Altman Z-Score, PEG Ratio, Revenue Growth.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
AA profiles as a value stock while RIO is a mature play — different risk/reward profiles.
AA carries more volatility with a beta of 1.57 — expect wider price swings.
RIO is growing revenue faster at 14.6% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 49/100), backed by strong 17.3% margins and 14.6% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alcoa Corp
BASIC MATERIALS · ALUMINUM · USA
Alcoa Corporation produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company is headquartered in Pittsburgh, Pennsylvania.
Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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