Brookfield Business Corp (BBUC)vsRio Tinto ADR (RIO)
BBUC
Brookfield Business Corp
$30.85
-8.21%
INDUSTRIALS · Cap: $6.96B
RIO
Rio Tinto ADR
$105.38
+2.20%
BASIC MATERIALS · Cap: $171.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 110% more annual revenue ($57.64B vs $27.46B). RIO leads profitability with a 17.3% profit margin vs -0.1%. RIO earns a higher WallStSmart Score of 54/100 (C-).
BBUC
Hold43
out of 100
Grade: D
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+88.8%
Fair Value
$324.96
Current Price
$30.85
$294.11 discount
Margin of Safety
+33.7%
Fair Value
$147.89
Current Price
$105.38
$42.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
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
Areas to Watch
ROE of 2.4% — below average capital efficiency
Revenue declined 4.5%
Currently unprofitable
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : BBUC
The strongest argument for BBUC centers on Price/Book.
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.
Bear Case : BBUC
The primary concerns for BBUC are Return on Equity, Revenue Growth, Profit Margin.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
BBUC profiles as a turnaround stock while RIO is a mature play — different risk/reward profiles.
BBUC carries more volatility with a beta of 1.38 — 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 43/100), backed by strong 17.3% margins and 14.6% revenue growth. BBUC offers better value entry with a 88.8% margin of safety. 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.
Brookfield Business Corp
INDUSTRIALS · CONGLOMERATES · USA
Brookfield Business Corporation focuses on healthcare, construction and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada and Brazil. The company is headquartered in New York, New York.
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.
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