Mercer International Inc (MERC)vsRio Tinto ADR (RIO)
MERC
Mercer International Inc
$1.12
+4.67%
BASIC MATERIALS · Cap: $75.02M
RIO
Rio Tinto ADR
$100.48
+4.14%
BASIC MATERIALS · Cap: $161.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 2985% more annual revenue ($57.64B vs $1.87B). RIO leads profitability with a 17.3% profit margin vs -26.7%. MERC appears more attractively valued with a PEG of 2.29. RIO earns a higher WallStSmart Score of 54/100 (C-).
MERC
Avoid33
out of 100
Grade: F
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MERC.
Margin of Safety
+14.1%
Fair Value
$114.19
Current Price
$100.48
$13.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -200.0% — below average capital efficiency
Revenue declined 8.0%
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : MERC
The strongest argument for MERC centers on Price/Book.
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 : MERC
The primary concerns for MERC are PEG Ratio, Market Cap, Return on Equity.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
MERC profiles as a turnaround stock while RIO is a mature play — different risk/reward profiles.
MERC carries more volatility with a beta of 0.78 — 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 33/100), backed by strong 17.3% margins and 14.6% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Mercer International Inc
BASIC MATERIALS · PAPER & PAPER PRODUCTS · USA
Mercer International Inc., manufactures and sells Northern Bleached Softwood Kraft Pulp (NBSK) in Europe, the United States, Asia and internationally. 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.
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