WallStSmart

Innospec Inc (IOSP)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 3142% more annual revenue ($57.64B vs $1.78B). RIO leads profitability with a 17.3% profit margin vs 6.6%. IOSP appears more attractively valued with a PEG of 0.66. RIO earns a higher WallStSmart Score of 54/100 (C-).

IOSP

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 5.5Value: 8.7Quality: 6.8
Piotroski: 3/9Altman Z: 3.96

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

IOSPUndervalued (+52.0%)

Margin of Safety

+52.0%

Fair Value

$184.30

Current Price

$76.26

$108.04 discount

UndervaluedFair: $184.30Overvalued
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

IOSP4 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.9610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.668/10

Growing faster than its price suggests

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

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

IOSP4 concerns · Avg: 2.8/10
Market CapQuality
$1.91B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.4%2/10

Revenue declined 2.4%

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 : IOSP

The strongest argument for IOSP centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.

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 : IOSP

The primary concerns for IOSP are Market Cap, Profit Margin, Piotroski F-Score.

Bear Case : RIO

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

Key Dynamics to Monitor

IOSP profiles as a value stock while RIO is a mature play — different risk/reward profiles.

IOSP carries more volatility with a beta of 0.88 — expect wider price swings.

RIO is growing revenue faster at 14.6% — 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 52/100), backed by strong 17.3% margins and 14.6% revenue growth. IOSP offers better value entry with a 52.0% margin of safety. 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.

Innospec Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, the rest of North America, the United Kingdom, the rest of Europe, and internationally. The company is headquartered in Englewood, Colorado.

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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