Fortuna Silver Mines Inc (FSM)vsRio Tinto ADR (RIO)
FSM
Fortuna Silver Mines Inc
$9.47
+3.72%
BASIC MATERIALS · Cap: $2.71B
RIO
Rio Tinto ADR
$100.69
-4.47%
BASIC MATERIALS · Cap: $168.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 5166% more annual revenue ($57.64B vs $1.09B). FSM leads profitability with a 31.1% profit margin vs 17.3%. FSM trades at a lower P/E of 8.3x. FSM earns a higher WallStSmart Score of 79/100 (B+).
FSM
Strong Buy79
out of 100
Grade: B+
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.4%
Fair Value
$23.13
Current Price
$9.46
$13.66 discount
Margin of Safety
+24.5%
Fair Value
$130.00
Current Price
$100.69
$29.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 53.0%
Revenue surging 75.6% year-over-year
Earnings expanding 81.6% YoY
Conservative balance sheet, low leverage
Every $100 of equity generates 35 in profit
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
No major concerns identified
Weak financial health signals
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : FSM
The strongest argument for FSM centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 31.1% and operating margin at 53.0%. Revenue growth of 75.6% 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 : FSM
No major red flags identified for FSM, but monitor valuation.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
FSM profiles as a growth stock while RIO is a mature play — different risk/reward profiles.
FSM carries more volatility with a beta of 2.08 — expect wider price swings.
FSM is growing revenue faster at 75.6% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
FSM scores higher overall (79/100 vs 54/100), backed by strong 31.1% margins and 75.6% revenue growth. RIO offers better value entry with a 24.5% 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.
Fortuna Silver Mines Inc
BASIC MATERIALS · GOLD · USA
Fortuna Silver Mines Inc. is engaged in the exploration, extraction and processing of precious and base metal deposits in Latin America. 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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