WallStSmart

Friedman Industries Inc. Common Stock (FRD)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 8810% more annual revenue ($57.64B vs $646.91M). RIO leads profitability with a 17.3% profit margin vs 3.0%. FRD trades at a lower P/E of 12.4x. FRD earns a higher WallStSmart Score of 60/100 (C).

FRD

Buy

60

out of 100

Grade: C

Growth: 8.7Profit: 5.5Value: 7.7Quality: 7.5
Piotroski: 3/9Altman Z: 3.85

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.5Value: 6.0Quality: 5.5
Piotroski: 1/9Altman Z: 2.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRDUndervalued (+31.7%)

Margin of Safety

+31.7%

Fair Value

$30.79

Current Price

$33.58

$2.79 discount

UndervaluedFair: $30.79Overvalued
RIOUndervalued (+24.3%)

Margin of Safety

+24.3%

Fair Value

$129.61

Current Price

$97.16

$32.45 discount

UndervaluedFair: $129.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRD5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
48.4%10/10

Revenue surging 48.4% year-over-year

EPS GrowthGrowth
70.1%10/10

Earnings expanding 70.1% YoY

Altman Z-ScoreHealth
3.8510/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

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

Every $100 of equity generates 35 in profit

Market CapQuality
$146.61B9/10

Large-cap with strong market position

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

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

FRD4 concerns · Avg: 2.8/10
Market CapQuality
$233.13M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-3.96M2/10

Negative free cash flow — burning cash

RIO3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

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 : FRD

The strongest argument for FRD centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 48.4% 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 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : FRD

The primary concerns for FRD are Market Cap, Profit Margin, Piotroski F-Score. Thin 3.0% margins leave little buffer for downturns.

Bear Case : RIO

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

Key Dynamics to Monitor

FRD profiles as a hypergrowth stock while RIO is a mature play — different risk/reward profiles.

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

FRD is growing revenue faster at 48.4% — sustainability is the question.

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

Bottom Line

FRD scores higher overall (60/100 vs 54/100) and 48.4% revenue growth. RIO offers better value entry with a 24.3% margin of safety. Both earn "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.

Friedman Industries Inc. Common Stock

BASIC MATERIALS · STEEL · USA

Friedman Industries, Incorporated is engaged in the steel processing, pipe fabrication and processing, and steel and pipe distribution businesses in the United States. The company is headquartered in Longview, Texas.

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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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