Rio Tinto ADR (RIO)vsTesla Inc (TSLA)
RIO
Rio Tinto ADR
$105.38
+2.20%
BASIC MATERIALS · Cap: $171.59B
TSLA
Tesla Inc
$428.35
+4.02%
CONSUMER CYCLICAL · Cap: $1.55T
Smart Verdict
WallStSmart Research — data-driven comparison
Tesla Inc generates 70% more annual revenue ($97.88B vs $57.64B). RIO leads profitability with a 17.3% profit margin vs 4.0%. TSLA appears more attractively valued with a PEG of 5.40. RIO earns a higher WallStSmart Score of 54/100 (C-).
RIO
Buy54
out of 100
Grade: C-
TSLA
Avoid33
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+33.7%
Fair Value
$147.89
Current Price
$105.38
$42.51 discount
Margin of Safety
-57.7%
Fair Value
$261.17
Current Price
$428.35
$167.18 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Mega-cap, among the largest globally
Conservative balance sheet, low leverage
15.8% revenue growth
Generating 1.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Earnings declined 5.6%
Trading at 19.6x book value
ROE of 4.9% — below average capital efficiency
4.0% margin — thin
Operating margin of 4.2%
Comparative Analysis Report
WallStSmart ResearchBull 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 : TSLA
The strongest argument for TSLA centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 15.8% demonstrates continued momentum.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Bear Case : TSLA
The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 384.9x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
RIO profiles as a mature stock while TSLA is a growth play — different risk/reward profiles.
TSLA carries more volatility with a beta of 1.79 — expect wider price swings.
TSLA is growing revenue faster at 15.8% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 33/100), backed by strong 17.3% margins and 14.6% revenue growth. Both earn "Buy" and "Avoid" 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.
Tesla Inc
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.
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