WallStSmart

DRDGOLD Limited ADR (DRD)vsRio Tinto ADR (RIO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 454% more annual revenue ($61.79B vs $11.16B). DRD leads profitability with a 38.1% profit margin vs 19.6%. DRD appears more attractively valued with a PEG of 1.00. DRD earns a higher WallStSmart Score of 85/100 (A-).

DRD

Exceptional Buy

85

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 9.3Quality: 9.0
Piotroski: 4/9Altman Z: 4.00

RIO

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 9.0Value: 6.0Quality: 5.5
Piotroski: 1/9Altman Z: 2.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRDUndervalued (+36.2%)

Margin of Safety

+36.2%

Fair Value

$56.90

Current Price

$24.82

$32.08 discount

UndervaluedFair: $56.90Overvalued
RIOUndervalued (+29.0%)

Margin of Safety

+29.0%

Fair Value

$138.11

Current Price

$85.74

$52.37 discount

UndervaluedFair: $138.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRD6 strengths · Avg: 10.0/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
44.8%10/10

Every $100 of equity generates 45 in profit

Profit MarginProfitability
38.1%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
54.9%10/10

Strong operational efficiency at 54.9%

Revenue GrowthGrowth
49.8%10/10

Revenue surging 49.8% year-over-year

EPS GrowthGrowth
82.2%10/10

Earnings expanding 82.2% YoY

RIO6 strengths · Avg: 8.5/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$146.72B9/10

Large-cap with strong market position

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

Areas to Watch

DRD0 concerns · Avg: 0/10

No major concerns identified

RIO2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.692/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DRD

The strongest argument for DRD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 38.1% and operating margin at 54.9%. Revenue growth of 49.8% 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 19.6% and operating margin at 28.1%. Revenue growth of 15.5% demonstrates continued momentum.

Bear Case : DRD

No major red flags identified for DRD, but monitor valuation.

Bear Case : RIO

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

Key Dynamics to Monitor

RIO carries more volatility with a beta of 0.66 — expect wider price swings.

DRD is growing revenue faster at 49.8% — sustainability is the question.

RIO generates stronger free cash flow (3.2B), providing more financial flexibility.

Monitor GOLD industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRD scores higher overall (85/100 vs 64/100), backed by strong 38.1% margins and 49.8% revenue growth. RIO offers better value entry with a 29.0% margin of safety. Both earn "Exceptional 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.

DRDGOLD Limited ADR

BASIC MATERIALS · GOLD · USA

DRDGOLD Limited, a gold mining company, is engaged in the surface gold tailings retreatment business in South Africa. The company is headquartered in Johannesburg, South Africa.

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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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