WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 7235% more annual revenue ($57.64B vs $785.84M). ERO leads profitability with a 33.6% profit margin vs 17.3%. ERO trades at a lower P/E of 9.9x. ERO earns a higher WallStSmart Score of 68/100 (B-).

ERO

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 9.5Value: 5.7Quality: 5.0

RIO

Buy

54

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EROSignificantly Overvalued (-83.1%)

Margin of Safety

-83.1%

Fair Value

$17.20

Current Price

$25.05

$7.85 premium

UndervaluedFair: $17.20Overvalued
RIOSignificantly Overvalued (-137.3%)

Margin of Safety

-137.3%

Fair Value

$41.34

Current Price

$86.64

$45.30 premium

UndervaluedFair: $41.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERO6 strengths · Avg: 9.7/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
33.6%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
43.6%10/10

Strong operational efficiency at 43.6%

Revenue GrowthGrowth
161.3%10/10

Revenue surging 161.3% year-over-year

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$140.85B9/10

Large-cap with strong market position

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

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

ERO1 concerns · Avg: 2.0/10
EPS GrowthGrowth
-11.0%2/10

Earnings declined 11.0%

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 33.6% and operating margin at 43.6%. Revenue growth of 161.3% 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

The primary concerns for ERO are EPS Growth.

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 1.51 — expect wider price swings.

ERO is growing revenue faster at 161.3% — sustainability is the question.

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

Bottom Line

ERO scores higher overall (68/100 vs 54/100), backed by strong 33.6% margins and 161.3% revenue growth. 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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