WallStSmart

Warrior Met Coal Inc (HCC)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 4294% more annual revenue ($57.64B vs $1.31B). RIO leads profitability with a 17.3% profit margin vs 4.3%. RIO trades at a lower P/E of 16.5x. RIO earns a higher WallStSmart Score of 54/100 (C-).

HCC

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 4.5Value: 3.0Quality: 8.5
Piotroski: 2/9Altman Z: 3.72

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

HCCSignificantly Overvalued (-41.4%)

Margin of Safety

-41.4%

Fair Value

$64.09

Current Price

$90.03

$25.94 premium

UndervaluedFair: $64.09Overvalued
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

HCC5 strengths · Avg: 9.0/10
EPS GrowthGrowth
1918.0%10/10

Earnings expanding 1918.0% YoY

Altman Z-ScoreHealth
3.7210/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
29.4%8/10

Revenue surging 29.4% year-over-year

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

HCC4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.7%3/10

ROE of 2.7% — below average capital efficiency

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
83.4x2/10

Premium valuation, high expectations priced in

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 : HCC

The strongest argument for HCC centers on EPS Growth, Altman Z-Score, Debt/Equity. Revenue growth of 29.4% 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 : HCC

The primary concerns for HCC are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 83.4x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.

Bear Case : RIO

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

Key Dynamics to Monitor

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

HCC carries more volatility with a beta of 0.69 — expect wider price swings.

HCC is growing revenue faster at 29.4% — 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 51/100), backed by strong 17.3% margins and 14.6% 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.

Warrior Met Coal Inc

BASIC MATERIALS · COKING COAL · USA

Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. The company is headquartered in Brookwood, Alabama.

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.

Want to dig deeper into these stocks?