WallStSmart

Element Solutions Inc (ESI)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 1960% more annual revenue ($57.64B vs $2.80B). RIO leads profitability with a 17.3% profit margin vs 5.3%. RIO trades at a lower P/E of 17.3x. RIO earns a higher WallStSmart Score of 54/100 (C-).

ESI

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 3.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.41

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESIOvervalued (-7.3%)

Margin of Safety

-7.3%

Fair Value

$30.22

Current Price

$43.90

$13.68 premium

UndervaluedFair: $30.22Overvalued
RIOUndervalued (+33.7%)

Margin of Safety

+33.7%

Fair Value

$147.89

Current Price

$105.38

$42.51 discount

UndervaluedFair: $147.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESI1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
41.5%10/10

Revenue surging 41.5% year-over-year

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$171.59B9/10

Large-cap with strong market position

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

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

ESI4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.6%3/10

ROE of 5.6% — below average capital efficiency

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

P/E RatioValuation
68.2x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-42.5%2/10

Earnings declined 42.5%

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 : ESI

The strongest argument for ESI centers on Revenue Growth. Revenue growth of 41.5% 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 : ESI

The primary concerns for ESI are Return on Equity, Profit Margin, P/E Ratio. A P/E of 68.2x leaves little room for execution misses.

Bear Case : RIO

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

Key Dynamics to Monitor

ESI profiles as a hypergrowth stock while RIO is a mature play — different risk/reward profiles.

ESI carries more volatility with a beta of 1.28 — expect wider price swings.

ESI is growing revenue faster at 41.5% — 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 48/100), 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.

Element Solutions Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Element Solutions Inc produces and sells specialty chemicals in the United States, China, and internationally. The company is headquartered in Fort Lauderdale, Florida.

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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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