AutoNation Inc (AN)vsRio Tinto ADR (RIO)
AN
AutoNation Inc
$205.97
+0.33%
CONSUMER CYCLICAL · Cap: $6.88B
RIO
Rio Tinto ADR
$105.38
+2.20%
BASIC MATERIALS · Cap: $171.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 110% more annual revenue ($57.64B vs $27.49B). RIO leads profitability with a 17.3% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.74. AN earns a higher WallStSmart Score of 63/100 (C+).
AN
Buy63
out of 100
Grade: C+
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.1%
Fair Value
$244.66
Current Price
$205.97
$38.69 discount
Margin of Safety
+33.7%
Fair Value
$147.89
Current Price
$105.38
$42.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Earnings expanding 31.5% YoY
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
2.5% margin — thin
Operating margin of 4.7%
Weak financial health signals
Revenue declined 2.1%
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.74 suggests the stock is reasonably priced for its growth.
Bull Case : RIO
The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : AN
The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.5% margins leave little buffer for downturns.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
AN profiles as a value stock while RIO is a mature play — different risk/reward profiles.
AN carries more volatility with a beta of 0.79 — 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
AN scores higher overall (63/100 vs 54/100). RIO offers better value entry with a 33.7% margin of safety. Both earn "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.
AutoNation Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.
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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