Largo Resources Ltd (LGO)vsRio Tinto ADR (RIO)
LGO
Largo Resources Ltd
$0.68
-0.92%
BASIC MATERIALS · Cap: $73.07M
RIO
Rio Tinto ADR
$99.96
+0.57%
BASIC MATERIALS · Cap: $167.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 48532% more annual revenue ($61.79B vs $127.06M). RIO leads profitability with a 19.6% profit margin vs -64.6%. RIO earns a higher WallStSmart Score of 64/100 (C+).
LGO
Buy52
out of 100
Grade: C-
RIO
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.7%
Fair Value
$1.66
Current Price
$0.68
$0.98 premium
Margin of Safety
+29.2%
Fair Value
$138.61
Current Price
$99.96
$38.65 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 68.5% year-over-year
Earnings expanding 115.3% YoY
Every $100 of equity generates 34 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 28.1%
15.5% revenue growth
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
ROE of -39.4% — below average capital efficiency
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : LGO
The strongest argument for LGO centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 68.5% 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 : LGO
The primary concerns for LGO are Market Cap, Piotroski F-Score, Return on Equity.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
LGO profiles as a hypergrowth stock while RIO is a growth play — different risk/reward profiles.
LGO carries more volatility with a beta of 2.31 — expect wider price swings.
LGO is growing revenue faster at 68.5% — sustainability is the question.
RIO generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (64/100 vs 52/100), backed by strong 19.6% margins and 15.5% 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.
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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