Mercer International Inc (MERC)vsRio Tinto ADR (RIO)
MERC
Mercer International Inc
$0.39
+3.56%
BASIC MATERIALS · Cap: $25.96M
RIO
Rio Tinto ADR
$99.96
+0.57%
BASIC MATERIALS · Cap: $167.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 3227% more annual revenue ($61.79B vs $1.86B). RIO leads profitability with a 19.6% profit margin vs -27.9%. MERC appears more attractively valued with a PEG of 2.29. RIO earns a higher WallStSmart Score of 64/100 (C+).
MERC
Hold35
out of 100
Grade: F
RIO
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.0%
Fair Value
$11.57
Current Price
$0.39
$11.18 discount
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
Conservative balance sheet, low leverage
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
Expensive relative to growth rate
1.5% revenue growth
Smaller company, higher risk/reward
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : MERC
The strongest argument for MERC centers on Debt/Equity.
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 : MERC
The primary concerns for MERC are PEG Ratio, Revenue Growth, Market Cap.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
MERC profiles as a turnaround stock while RIO is a growth play — different risk/reward profiles.
RIO carries more volatility with a beta of 0.66 — expect wider price swings.
RIO is growing revenue faster at 15.5% — 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 35/100), backed by strong 19.6% margins and 15.5% revenue growth. MERC offers better value entry with a 85.0% margin of safety. 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.
Mercer International Inc
BASIC MATERIALS · PAPER & PAPER PRODUCTS · USA
Mercer International Inc., manufactures and sells Northern Bleached Softwood Kraft Pulp (NBSK) in Europe, the United States, Asia and internationally. 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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