WallStSmart

Fortuna Silver Mines Inc (FSM)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 5986% more annual revenue ($57.64B vs $947.06M). FSM leads profitability with a 30.3% profit margin vs 17.3%. FSM trades at a lower P/E of 11.0x. FSM earns a higher WallStSmart Score of 77/100 (B+).

FSM

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 9.0Value: 8.3Quality: 7.3
Piotroski: 5/9Altman Z: 2.66

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

FSMUndervalued (+46.6%)

Margin of Safety

+46.6%

Fair Value

$21.35

Current Price

$9.33

$12.02 discount

UndervaluedFair: $21.35Overvalued
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

FSM6 strengths · Avg: 9.7/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Profit MarginProfitability
30.3%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
43.4%10/10

Strong operational efficiency at 43.4%

Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
987.0%10/10

Earnings expanding 987.0% YoY

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$161.98B9/10

Large-cap with strong market position

P/E RatioValuation
16.4x8/10

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

FSM0 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 : FSM

The strongest argument for FSM centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 30.3% and operating margin at 43.4%. Revenue growth of 38.4% 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 : FSM

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

Bear Case : RIO

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

Key Dynamics to Monitor

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

FSM carries more volatility with a beta of 2.12 — expect wider price swings.

FSM is growing revenue faster at 38.4% — sustainability is the question.

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

Bottom Line

FSM scores higher overall (77/100 vs 54/100), backed by strong 30.3% margins and 38.4% revenue growth. Both earn "Strong 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.

Fortuna Silver Mines Inc

BASIC MATERIALS · GOLD · USA

Fortuna Silver Mines Inc. is engaged in the exploration, extraction and processing of precious and base metal deposits in Latin America. The company is headquartered in Vancouver, Canada.

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.

Want to dig deeper into these stocks?