WallStSmart

Franco-Nevada Corporation (FNV)vsRio Tinto ADR (RIO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 2860% more annual revenue ($61.79B vs $2.09B). FNV leads profitability with a 65.7% profit margin vs 19.6%. RIO appears more attractively valued with a PEG of 5.69. FNV earns a higher WallStSmart Score of 68/100 (B-).

FNV

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 9.0Value: 2.7Quality: 7.8
Piotroski: 4/9Altman Z: 8.71

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

FNVSignificantly Overvalued (-36.6%)

Margin of Safety

-36.6%

Fair Value

$188.71

Current Price

$238.65

$49.94 premium

UndervaluedFair: $188.71Overvalued
RIOUndervalued (+29.4%)

Margin of Safety

+29.4%

Fair Value

$138.95

Current Price

$101.10

$37.85 discount

UndervaluedFair: $138.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FNV5 strengths · Avg: 10.0/10
Profit MarginProfitability
65.7%10/10

Keeps 66 of every $100 in revenue as profit

Operating MarginProfitability
79.3%10/10

Strong operational efficiency at 79.3%

Revenue GrowthGrowth
77.7%10/10

Revenue surging 77.7% year-over-year

EPS GrowthGrowth
123.1%10/10

Earnings expanding 123.1% YoY

Altman Z-ScoreHealth
8.7110/10

Safe zone — low bankruptcy risk

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

Every $100 of equity generates 35 in profit

Market CapQuality
$158.04B9/10

Large-cap with strong market position

P/E RatioValuation
12.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

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

FNV2 concerns · Avg: 3.0/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
11.812/10

Expensive relative to growth rate

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 : FNV

The strongest argument for FNV centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 65.7% and operating margin at 79.3%. Revenue growth of 77.7% 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 : FNV

The primary concerns for FNV are P/E Ratio, PEG Ratio.

Bear Case : RIO

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

Key Dynamics to Monitor

FNV carries more volatility with a beta of 0.90 — expect wider price swings.

FNV is growing revenue faster at 77.7% — sustainability is the question.

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

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

Bottom Line

FNV scores higher overall (68/100 vs 64/100), backed by strong 65.7% margins and 77.7% revenue growth. RIO offers better value entry with a 29.4% 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.

Franco-Nevada Corporation

BASIC MATERIALS · GOLD · USA

Franco-Nevada Corporation is a gold-focused royalty and flow company in the United States, Latin America, Canada, Australia, Europe and Africa, and internationally. The company is headquartered in Toronto, Canada.

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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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