WallStSmart

ArcelorMittal SA ADR (MT)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ArcelorMittal SA ADR generates 6% more annual revenue ($61.35B vs $57.64B). RIO leads profitability with a 17.3% profit margin vs 5.1%. MT appears more attractively valued with a PEG of 0.66. MT earns a higher WallStSmart Score of 62/100 (C+).

MT

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 3.5Value: 6.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.44

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 5.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MTSignificantly Overvalued (-29.0%)

Margin of Safety

-29.0%

Fair Value

$51.66

Current Price

$55.92

$4.26 premium

UndervaluedFair: $51.66Overvalued
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

MT5 strengths · Avg: 8.0/10
PEG RatioValuation
0.668/10

Growing faster than its price suggests

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
32.8%8/10

Earnings expanding 32.8% YoY

Free Cash FlowQuality
$1.75B8/10

Generating 1.7B in free cash flow

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

MT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

Operating MarginProfitability
-5.1%1/10

Operating margin of -5.1%

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 : MT

The strongest argument for MT centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.66 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 : MT

The primary concerns for MT are Revenue Growth, Return on Equity, Profit Margin.

Bear Case : RIO

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

Key Dynamics to Monitor

MT profiles as a value stock while RIO is a mature play — different risk/reward profiles.

MT carries more volatility with a beta of 1.71 — 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

MT scores higher overall (62/100 vs 54/100). 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.

ArcelorMittal SA ADR

BASIC MATERIALS · STEEL · USA

ArcelorMittal owns and operates steelmaking and mining facilities in Europe, North and South America, Asia and Africa. The company is headquartered in Luxembourg City, Luxembourg.

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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