Largo Resources Ltd (LGO)vsRio Tinto ADR (RIO)
LGO
Largo Resources Ltd
$1.22
+2.52%
BASIC MATERIALS · Cap: $97.28M
RIO
Rio Tinto ADR
$87.54
+0.89%
BASIC MATERIALS · Cap: $139.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 51416% more annual revenue ($57.64B vs $111.88M). RIO leads profitability with a 17.3% profit margin vs -57.3%. RIO earns a higher WallStSmart Score of 54/100 (C-).
LGO
Hold48
out of 100
Grade: D+
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LGO.
Margin of Safety
-136.9%
Fair Value
$41.41
Current Price
$87.54
$46.13 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 115.3% YoY
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
Smaller company, higher risk/reward
ROE of -38.4% — below average capital efficiency
Negative free cash flow — burning cash
Currently unprofitable
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : LGO
The strongest argument for LGO centers on Price/Book, EPS Growth. Revenue growth of 11.2% demonstrates continued momentum.
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 : LGO
The primary concerns for LGO are Market Cap, Return on Equity, Free Cash Flow.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
LGO profiles as a turnaround stock while RIO is a mature play — different risk/reward profiles.
LGO carries more volatility with a beta of 2.18 — expect wider price swings.
RIO is growing revenue faster at 14.6% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 48/100), backed by strong 17.3% margins and 14.6% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Largo Resources Ltd
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Largo Resources Ltd. is a natural resource exploration and development company in Brazil and Canada. The company is headquartered in Toronto, 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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