WallStSmart

DRDGOLD Limited ADR (DRD)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 531% more annual revenue ($57.64B vs $9.13B). DRD leads profitability with a 35.1% profit margin vs 17.3%. DRD appears more attractively valued with a PEG of 1.00. DRD earns a higher WallStSmart Score of 82/100 (A-).

DRD

Exceptional Buy

82

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 8.7Quality: 9.0
Piotroski: 4/9Altman Z: 3.45

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 5.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRDUndervalued (+56.1%)

Margin of Safety

+56.1%

Fair Value

$82.78

Current Price

$26.70

$56.08 discount

UndervaluedFair: $82.78Overvalued
RIOUndervalued (+14.1%)

Margin of Safety

+14.1%

Fair Value

$114.19

Current Price

$100.48

$13.71 discount

UndervaluedFair: $114.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRD6 strengths · Avg: 10.0/10
Return on EquityProfitability
34.7%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
35.1%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Revenue GrowthGrowth
32.9%10/10

Revenue surging 32.9% year-over-year

EPS GrowthGrowth
97.9%10/10

Earnings expanding 97.9% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$163.40B9/10

Large-cap with strong market position

P/E RatioValuation
16.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

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

Areas to Watch

DRD0 concerns · Avg: 0/10

No major concerns identified

RIO2 concerns · Avg: 2.0/10
PEG RatioValuation
5.692/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.6%2/10

Earnings declined 5.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRD

The strongest argument for DRD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 35.1% and operating margin at 46.3%. Revenue growth of 32.9% demonstrates continued momentum.

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 : DRD

No major red flags identified for DRD, but monitor valuation.

Bear Case : RIO

The primary concerns for RIO are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

DRD profiles as a growth stock while RIO is a mature play — different risk/reward profiles.

RIO carries more volatility with a beta of 0.64 — expect wider price swings.

DRD is growing revenue faster at 32.9% — sustainability is the question.

RIO generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

DRD scores higher overall (82/100 vs 54/100), backed by strong 35.1% margins and 32.9% revenue growth. Both earn "Exceptional 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.

DRDGOLD Limited ADR

BASIC MATERIALS · GOLD · USA

DRDGOLD Limited, a gold mining company, is engaged in the surface gold tailings retreatment business in South Africa. The company is headquartered in Johannesburg, South Africa.

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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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