Element Solutions Inc (ESI)vsRio Tinto ADR (RIO)
ESI
Element Solutions Inc
$37.88
-1.43%
BASIC MATERIALS · Cap: $8.95B
RIO
Rio Tinto ADR
$101.10
+1.46%
BASIC MATERIALS · Cap: $158.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 1862% more annual revenue ($61.79B vs $3.15B). RIO leads profitability with a 19.6% profit margin vs 5.7%. RIO trades at a lower P/E of 12.7x. RIO earns a higher WallStSmart Score of 64/100 (C+).
ESI
Buy56
out of 100
Grade: C
RIO
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.0%
Fair Value
$29.39
Current Price
$37.88
$8.49 premium
Margin of Safety
+29.4%
Fair Value
$138.95
Current Price
$101.10
$37.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 56.4% year-over-year
Earnings expanding 61.9% YoY
Every $100 of equity generates 35 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 28.1%
15.5% revenue growth
Areas to Watch
ROE of 5.4% — below average capital efficiency
5.7% margin — thin
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ESI
The strongest argument for ESI centers on Revenue Growth, EPS Growth. Revenue growth of 56.4% demonstrates continued momentum.
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.
Bear Case : ESI
The primary concerns for ESI are Return on Equity, Profit Margin, P/E Ratio. A P/E of 49.6x leaves little room for execution misses.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
ESI profiles as a hypergrowth stock while RIO is a growth play — different risk/reward profiles.
ESI carries more volatility with a beta of 1.24 — expect wider price swings.
ESI is growing revenue faster at 56.4% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (64/100 vs 56/100), 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.
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.
Visit Website →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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