WallStSmart

Rio Tinto ADR (RIO)vsStepan Company (SCL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 2360% more annual revenue ($57.64B vs $2.34B). RIO leads profitability with a 17.3% profit margin vs -0.6%. SCL appears more attractively valued with a PEG of 1.75. SCL earns a higher WallStSmart Score of 55/100 (C).

RIO

Buy

54

out of 100

Grade: C-

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

SCL

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 3.0Value: 6.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+14.1%)

Margin of Safety

+14.1%

Fair Value

$114.19

Current Price

$100.48

$13.71 discount

UndervaluedFair: $114.19Overvalued
SCLUndervalued (+75.2%)

Margin of Safety

+75.2%

Fair Value

$266.45

Current Price

$50.03

$216.42 discount

UndervaluedFair: $266.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SCL2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
49.1%8/10

Earnings expanding 49.1% YoY

Areas to Watch

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%

SCL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.9%4/10

1.9% revenue growth

Market CapQuality
$1.11B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SCL

The strongest argument for SCL centers on Price/Book, EPS Growth.

Bear Case : RIO

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

Bear Case : SCL

The primary concerns for SCL are PEG Ratio, Revenue Growth, Market Cap.

Key Dynamics to Monitor

RIO profiles as a mature stock while SCL is a turnaround play — different risk/reward profiles.

SCL carries more volatility with a beta of 1.01 — 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

SCL scores higher overall (55/100 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.

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.

Stepan Company

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Stepan Company produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in North America, Europe, Latin America, and Asia. The company is headquartered in Northfield, Illinois.

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