WallStSmart

Rio Tinto ADR (RIO)vsValhi Inc (VHI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 2647% more annual revenue ($57.64B vs $2.10B). RIO leads profitability with a 17.3% profit margin vs -3.5%. VHI appears more attractively valued with a PEG of 0.32. RIO earns a higher WallStSmart Score of 54/100 (C-).

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.5Value: 6.0Quality: 5.5
Piotroski: 1/9Altman Z: 2.03

VHI

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 3.0Value: 7.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+24.3%)

Margin of Safety

+24.3%

Fair Value

$129.61

Current Price

$93.72

$35.89 discount

UndervaluedFair: $129.61Overvalued
VHIUndervalued (+6.4%)

Margin of Safety

+6.4%

Fair Value

$16.76

Current Price

$13.75

$3.01 discount

UndervaluedFair: $16.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO6 strengths · Avg: 8.5/10
Return on EquityProfitability
34.5%10/10

Every $100 of equity generates 35 in profit

Market CapQuality
$146.61B9/10

Large-cap with strong market position

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

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

VHI2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3210/10

Growing faster than its price suggests

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Areas to Watch

RIO3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.692/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.6%2/10

Earnings declined 5.6%

VHI4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Market CapQuality
$385.48M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-7.1%2/10

ROE of -7.1% — below average capital efficiency

EPS GrowthGrowth
-88.1%2/10

Earnings declined 88.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : RIO

The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bull Case : VHI

The strongest argument for VHI centers on PEG Ratio, Price/Book. PEG of 0.32 suggests the stock is reasonably priced for its growth.

Bear Case : RIO

The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : VHI

The primary concerns for VHI are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

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

VHI carries more volatility with a beta of 0.96 — 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

RIO scores higher overall (54/100 vs 44/100), backed by strong 17.3% margins and 14.6% revenue growth. 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.

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.

Valhi Inc

BASIC MATERIALS · CHEMICALS · USA

Valhi, Inc. engages in the chemicals, components, and real estate development and management businesses in Asia Pacific, Europe, North America, and internationally.

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