Alcoa Corp (AA)vsRio Tinto ADR (RIO)
AA
Alcoa Corp
$39.54
+2.92%
BASIC MATERIALS · Cap: $10.61B
RIO
Rio Tinto ADR
$83.73
+0.69%
BASIC MATERIALS · Cap: $139.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 332% more annual revenue ($61.79B vs $14.31B). RIO leads profitability with a 19.6% profit margin vs 10.7%. RIO appears more attractively valued with a PEG of 5.69. AA earns a higher WallStSmart Score of 78/100 (B+).
AA
Strong Buy78
out of 100
Grade: B+
RIO
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.9%
Fair Value
$28.52
Current Price
$39.54
$11.02 premium
Margin of Safety
+28.9%
Fair Value
$137.94
Current Price
$83.73
$54.21 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 105.7% YoY
Revenue surging 23.7% year-over-year
Attractively priced relative to earnings
Every $100 of equity generates 34 in profit
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 28.1%
15.5% revenue growth
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AA
The strongest argument for AA centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 23.7% demonstrates continued momentum.
Bull Case : RIO
The strongest argument for RIO centers on P/E Ratio, Return on Equity, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 28.1%. Revenue growth of 15.5% demonstrates continued momentum.
Bear Case : AA
The primary concerns for AA are Altman Z-Score, PEG Ratio.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
AA carries more volatility with a beta of 1.74 — expect wider price swings.
AA is growing revenue faster at 23.7% — sustainability is the question.
RIO generates stronger free cash flow (3.2B), providing more financial flexibility.
Monitor ALUMINUM industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AA scores higher overall (78/100 vs 64/100) and 23.7% revenue growth. RIO offers better value entry with a 28.9% margin of safety. Both earn "Strong Buy" and "Buy" 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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