WallStSmart

Friedman Industries Inc. Common Stock (FRD)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 9764% more annual revenue ($57.64B vs $584.35M). RIO leads profitability with a 17.3% profit margin vs 2.7%. FRD trades at a lower P/E of 9.2x. RIO earns a higher WallStSmart Score of 54/100 (C-).

FRD

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 8.3Quality: 8.5
Piotroski: 3/9Altman Z: 4.26

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

FRDUndervalued (+64.9%)

Margin of Safety

+64.9%

Fair Value

$59.85

Current Price

$20.57

$39.28 discount

UndervaluedFair: $59.85Overvalued
RIOUndervalued (+14.0%)

Margin of Safety

+14.0%

Fair Value

$114.13

Current Price

$100.48

$13.65 discount

UndervaluedFair: $114.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRD5 strengths · Avg: 10.0/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
78.6%10/10

Revenue surging 78.6% year-over-year

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.2610/10

Safe zone — low bankruptcy risk

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

FRD4 concerns · Avg: 3.0/10
Market CapQuality
$145.94M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
2.3%3/10

Operating margin of 2.3%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : FRD

The strongest argument for FRD centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 78.6% 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 : FRD

The primary concerns for FRD are Market Cap, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : RIO

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

Key Dynamics to Monitor

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

FRD carries more volatility with a beta of 1.57 — expect wider price swings.

FRD is growing revenue faster at 78.6% — 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 49/100), backed by strong 17.3% margins and 14.6% revenue growth. FRD offers better value entry with a 64.9% 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.

Friedman Industries Inc. Common Stock

BASIC MATERIALS · STEEL · USA

Friedman Industries, Incorporated is engaged in the steel processing, pipe fabrication and processing, and steel and pipe distribution businesses in the United States. The company is headquartered in Longview, Texas.

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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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