WallStSmart

Rio Tinto ADR (RIO)vsValhi Inc (VHI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 2755% more annual revenue ($61.79B vs $2.16B). RIO leads profitability with a 19.6% profit margin vs -2.4%. VHI appears more attractively valued with a PEG of 0.32. RIO earns a higher WallStSmart Score of 64/100 (C+).

RIO

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 9.0Value: 6.0Quality: 5.5
Piotroski: 1/9Altman Z: 2.03

VHI

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 3.5Value: 7.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+29.2%)

Margin of Safety

+29.2%

Fair Value

$138.61

Current Price

$99.96

$38.65 discount

UndervaluedFair: $138.61Overvalued
VHIUndervalued (+8.9%)

Margin of Safety

+8.9%

Fair Value

$17.21

Current Price

$18.26

$1.05 discount

UndervaluedFair: $17.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO6 strengths · Avg: 8.5/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$167.95B9/10

Large-cap with strong market position

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

VHI3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3210/10

Growing faster than its price suggests

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
2500.0%10/10

Earnings expanding 2500.0% YoY

Areas to Watch

RIO2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.692/10

Expensive relative to growth rate

VHI3 concerns · Avg: 2.0/10
Market CapQuality
$504.97M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.6%2/10

ROE of -3.6% — below average capital efficiency

Profit MarginProfitability
-2.4%1/10

Currently unprofitable

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 19.6% and operating margin at 28.1%. Revenue growth of 15.5% demonstrates continued momentum.

Bull Case : VHI

The strongest argument for VHI centers on PEG Ratio, Price/Book, EPS Growth. Revenue growth of 12.2% demonstrates continued momentum. 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.

Bear Case : VHI

The primary concerns for VHI are Market Cap, Return on Equity, Profit Margin.

Key Dynamics to Monitor

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

VHI carries more volatility with a beta of 1.02 — 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 58/100), backed by strong 19.6% margins and 15.5% revenue growth. 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.

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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