WallStSmart

Alcoa Corp (AA)vsVale SA ADR (VALE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vale SA ADR generates 1565% more annual revenue ($213.59B vs $12.83B). AA leads profitability with a 9.0% profit margin vs 6.5%. AA appears more attractively valued with a PEG of 8.36. VALE earns a higher WallStSmart Score of 55/100 (C).

AA

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 6.5Value: 6.7Quality: 5.3
Piotroski: 5/9Altman Z: 1.52

VALE

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AAUndervalued (+15.2%)

Margin of Safety

+15.2%

Fair Value

$74.46

Current Price

$58.70

$15.76 discount

UndervaluedFair: $74.46Overvalued
VALESignificantly Overvalued (-47.9%)

Margin of Safety

-47.9%

Fair Value

$11.75

Current Price

$15.14

$3.39 premium

UndervaluedFair: $11.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AA2 strengths · Avg: 8.0/10
P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

VALE3 strengths · Avg: 8.3/10
Market CapQuality
$64.24B9/10

Large-cap with strong market position

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

Areas to Watch

AA3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.524/10

Distress zone — elevated risk

PEG RatioValuation
8.362/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.1%2/10

Revenue declined 1.1%

VALE4 concerns · Avg: 3.5/10
P/E RatioValuation
27.0x4/10

Moderate valuation

Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : AA

The strongest argument for AA centers on P/E Ratio, Price/Book.

Bull Case : VALE

The strongest argument for VALE centers on Market Cap, Price/Book, Operating Margin.

Bear Case : AA

The primary concerns for AA are Altman Z-Score, PEG Ratio, Revenue Growth.

Bear Case : VALE

The primary concerns for VALE are P/E Ratio, Revenue Growth, Return on Equity.

Key Dynamics to Monitor

AA carries more volatility with a beta of 1.78 — expect wider price swings.

VALE is growing revenue faster at 0.5% — sustainability is the question.

VALE generates stronger free cash flow (723M), providing more financial flexibility.

Monitor ALUMINUM industry trends, competitive dynamics, and regulatory changes.

Bottom Line

VALE scores higher overall (55/100 vs 53/100). AA offers better value entry with a 15.2% margin of safety. 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.

Alcoa Corp

BASIC MATERIALS · ALUMINUM · USA

Alcoa Corporation produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company is headquartered in Pittsburgh, Pennsylvania.

Vale SA ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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