Element Solutions Inc (ESI)vsRio Tinto ADR (RIO)
ESI
Element Solutions Inc
$43.90
+3.86%
BASIC MATERIALS · Cap: $10.30B
RIO
Rio Tinto ADR
$105.38
+2.20%
BASIC MATERIALS · Cap: $171.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 1960% more annual revenue ($57.64B vs $2.80B). RIO leads profitability with a 17.3% profit margin vs 5.3%. RIO trades at a lower P/E of 17.3x. RIO earns a higher WallStSmart Score of 54/100 (C-).
ESI
Hold48
out of 100
Grade: D+
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-7.3%
Fair Value
$30.22
Current Price
$43.90
$13.68 premium
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
Revenue surging 41.5% year-over-year
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
ROE of 5.6% — below average capital efficiency
5.3% margin — thin
Premium valuation, high expectations priced in
Earnings declined 42.5%
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : ESI
The strongest argument for ESI centers on Revenue Growth. Revenue growth of 41.5% 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 : ESI
The primary concerns for ESI are Return on Equity, Profit Margin, P/E Ratio. A P/E of 68.2x leaves little room for execution misses.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ESI profiles as a hypergrowth stock while RIO is a mature play — different risk/reward profiles.
ESI carries more volatility with a beta of 1.28 — expect wider price swings.
ESI is growing revenue faster at 41.5% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 48/100), backed by strong 17.3% margins and 14.6% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Element Solutions Inc
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Element Solutions Inc produces and sells specialty chemicals in the United States, China, and internationally. The company is headquartered in Fort Lauderdale, Florida.
Visit Website →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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