WallStSmart

Fortuna Silver Mines Inc (FSM)vsRio Tinto ADR (RIO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 5126% more annual revenue ($61.79B vs $1.18B). FSM leads profitability with a 32.0% profit margin vs 19.6%. FSM trades at a lower P/E of 10.4x. FSM earns a higher WallStSmart Score of 77/100 (B+).

FSM

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 9.5Value: 8.3Quality: 9.0
Piotroski: 4/9Altman Z: 3.05

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

FSMUndervalued (+52.0%)

Margin of Safety

+52.0%

Fair Value

$25.12

Current Price

$11.99

$13.13 discount

UndervaluedFair: $25.12Overvalued
RIOUndervalued (+29.2%)

Margin of Safety

+29.2%

Fair Value

$138.61

Current Price

$99.96

$38.65 discount

UndervaluedFair: $138.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FSM6 strengths · Avg: 10.0/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Profit MarginProfitability
32.0%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
51.1%10/10

Strong operational efficiency at 51.1%

Revenue GrowthGrowth
38.2%10/10

Revenue surging 38.2% year-over-year

EPS GrowthGrowth
101.4%10/10

Earnings expanding 101.4% YoY

Altman Z-ScoreHealth
3.0510/10

Safe zone — low bankruptcy risk

RIO6 strengths · Avg: 8.5/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$167.95B9/10

Large-cap with strong market position

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

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

FSM0 concerns · Avg: 0/10

No major concerns identified

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 : FSM

The strongest argument for FSM centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 32.0% and operating margin at 51.1%. Revenue growth of 38.2% 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 : 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.

Key Dynamics to Monitor

FSM carries more volatility with a beta of 2.21 — expect wider price swings.

FSM is growing revenue faster at 38.2% — sustainability is the question.

RIO generates stronger free cash flow (3.2B), providing more financial flexibility.

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

Bottom Line

FSM scores higher overall (77/100 vs 64/100), backed by strong 32.0% margins and 38.2% revenue growth. RIO offers better value entry with a 29.2% 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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