WallStSmart

Largo Resources Ltd (LGO)vsRio Tinto ADR (RIO)

VS

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

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 2.0Value: 4.7Quality: 3.0
Piotroski: 1/9Altman Z: -0.71

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

LGOOvervalued (-12.7%)

Margin of Safety

-12.7%

Fair Value

$1.66

Current Price

$0.68

$0.98 premium

UndervaluedFair: $1.66Overvalued
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

LGO3 strengths · Avg: 10.0/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
68.5%10/10

Revenue surging 68.5% year-over-year

EPS GrowthGrowth
115.3%10/10

Earnings expanding 115.3% YoY

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

LGO4 concerns · Avg: 2.5/10
Market CapQuality
$73.07M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Return on EquityProfitability
-39.4%2/10

ROE of -39.4% — below average capital efficiency

Free Cash FlowQuality
$-17.08M2/10

Negative free cash flow — burning cash

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 : 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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