WallStSmart

Ero Copper Corp (ERO)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 6138% more annual revenue ($57.64B vs $923.93M). ERO leads profitability with a 31.6% profit margin vs 17.3%. ERO trades at a lower P/E of 10.3x. ERO earns a higher WallStSmart Score of 78/100 (B+).

ERO

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 9.5Value: 7.0Quality: 5.0

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EROUndervalued (+7.2%)

Margin of Safety

+7.2%

Fair Value

$33.93

Current Price

$28.97

$4.96 discount

UndervaluedFair: $33.93Overvalued
RIOUndervalued (+33.6%)

Margin of Safety

+33.6%

Fair Value

$147.83

Current Price

$107.90

$39.93 discount

UndervaluedFair: $147.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERO6 strengths · Avg: 9.7/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.5%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
31.6%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
34.7%10/10

Strong operational efficiency at 34.7%

Revenue GrowthGrowth
110.4%10/10

Revenue surging 110.4% year-over-year

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$171.37B9/10

Large-cap with strong market position

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

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

ERO0 concerns · Avg: 0/10

No major concerns identified

RIO2 concerns · Avg: 2.0/10
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 : ERO

The strongest argument for ERO centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 31.6% and operating margin at 34.7%. Revenue growth of 110.4% demonstrates continued momentum.

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 : ERO

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

Bear Case : RIO

The primary concerns for RIO are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

ERO carries more volatility with a beta of 1.56 — expect wider price swings.

ERO is growing revenue faster at 110.4% — sustainability is the question.

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

Bottom Line

ERO scores higher overall (78/100 vs 54/100), backed by strong 31.6% margins and 110.4% revenue growth. RIO offers better value entry with a 33.6% 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.

Ero Copper Corp

BASIC MATERIALS · COPPER · USA

Ero Copper Corp. The company is headquartered in Vancouver, Canada.

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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