WallStSmart

James Hardie Industries PLC ADR (JHX)vsRio Tinto ADR (RIO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 1209% more annual revenue ($57.64B vs $4.40B). RIO leads profitability with a 17.3% profit margin vs 2.7%. JHX appears more attractively valued with a PEG of 0.90. JHX earns a higher WallStSmart Score of 56/100 (C).

JHX

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 4.0Quality: 6.3
Piotroski: 4/9Altman Z: 2.26

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 5.3Quality: 5.0
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JHXSignificantly Overvalued (-32.8%)

Margin of Safety

-32.8%

Fair Value

$19.58

Current Price

$20.37

$0.79 premium

UndervaluedFair: $19.58Overvalued
RIOUndervalued (+14.1%)

Margin of Safety

+14.1%

Fair Value

$114.19

Current Price

$100.48

$13.71 discount

UndervaluedFair: $114.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JHX3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
30.1%10/10

Revenue surging 30.1% year-over-year

PEG RatioValuation
0.908/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$163.40B9/10

Large-cap with strong market position

P/E RatioValuation
16.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

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

JHX4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.8%3/10

ROE of 2.8% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

P/E RatioValuation
84.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-64.1%2/10

Earnings declined 64.1%

RIO2 concerns · Avg: 2.0/10
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 : JHX

The strongest argument for JHX centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 30.1% demonstrates continued momentum. PEG of 0.90 suggests the stock is reasonably priced for its growth.

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 : JHX

The primary concerns for JHX are Return on Equity, Profit Margin, P/E Ratio. A P/E of 84.9x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.

Bear Case : RIO

The primary concerns for RIO are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

JHX carries more volatility with a beta of 1.01 — expect wider price swings.

JHX is growing revenue faster at 30.1% — sustainability is the question.

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

Bottom Line

JHX scores higher overall (56/100 vs 54/100) and 30.1% revenue growth. 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.

James Hardie Industries PLC ADR

BASIC MATERIALS · BUILDING MATERIALS · USA

James Hardie Industries plc manufactures and sells fiber cement, gypsum fiber and cement bonded construction products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, the Philippines and Canada. The company is headquartered in Dublin, Ireland.

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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