WallStSmart

CF Industries Holdings Inc (CF)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 678% more annual revenue ($57.64B vs $7.41B). CF leads profitability with a 23.7% profit margin vs 17.3%. CF appears more attractively valued with a PEG of 3.25. CF earns a higher WallStSmart Score of 75/100 (B).

CF

Strong Buy

75

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 2.37

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.5Value: 6.0Quality: 5.5
Piotroski: 1/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CFUndervalued (+49.7%)

Margin of Safety

+49.7%

Fair Value

$217.58

Current Price

$117.54

$100.04 discount

UndervaluedFair: $217.58Overvalued
RIOUndervalued (+24.5%)

Margin of Safety

+24.5%

Fair Value

$130.00

Current Price

$100.69

$29.31 discount

UndervaluedFair: $130.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CF6 strengths · Avg: 9.5/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.9%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

EPS GrowthGrowth
115.1%10/10

Earnings expanding 115.1% YoY

Profit MarginProfitability
23.7%9/10

Keeps 24 of every $100 in revenue as profit

Revenue GrowthGrowth
19.4%8/10

19.4% revenue growth

RIO6 strengths · Avg: 8.5/10
Return on EquityProfitability
34.5%10/10

Every $100 of equity generates 35 in profit

Market CapQuality
$168.54B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.3%8/10

Strong operational efficiency at 25.3%

Free Cash FlowQuality
$2.53B8/10

Generating 2.5B in free cash flow

Areas to Watch

CF1 concerns · Avg: 2.0/10
PEG RatioValuation
3.252/10

Expensive relative to growth rate

RIO3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.692/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.6%2/10

Earnings declined 5.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : CF

The strongest argument for CF centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 23.7% and operating margin at 33.6%. Revenue growth of 19.4% demonstrates continued momentum.

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 : CF

The primary concerns for CF are PEG Ratio.

Bear Case : RIO

The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

CF profiles as a growth stock while RIO is a mature play — different risk/reward profiles.

RIO carries more volatility with a beta of 0.65 — expect wider price swings.

CF is growing revenue faster at 19.4% — sustainability is the question.

RIO generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

CF scores higher overall (75/100 vs 54/100), backed by strong 23.7% margins and 19.4% revenue growth. RIO offers better value entry with a 24.5% 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.

CF Industries Holdings Inc

BASIC MATERIALS · AGRICULTURAL INPUTS · USA

CF Industries Holdings, Inc. is a North American manufacturer and distributor of agricultural fertilizers, based in Deerfield, Illinois.

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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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