WallStSmart

Nexa Resources SA (NEXA)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 1666% more annual revenue ($57.64B vs $3.26B). RIO leads profitability with a 17.3% profit margin vs 6.4%. NEXA trades at a lower P/E of 7.8x. NEXA earns a higher WallStSmart Score of 72/100 (B).

NEXA

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.68

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.5Value: 6.0Quality: 5.5
Piotroski: 1/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NEXASignificantly Overvalued (-54.0%)

Margin of Safety

-54.0%

Fair Value

$8.04

Current Price

$13.05

$5.01 premium

UndervaluedFair: $8.04Overvalued
RIOUndervalued (+24.5%)

Margin of Safety

+24.5%

Fair Value

$130.00

Current Price

$100.69

$29.31 discount

UndervaluedFair: $130.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NEXA5 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Revenue GrowthGrowth
41.7%10/10

Revenue surging 41.7% year-over-year

EPS GrowthGrowth
654.0%10/10

Earnings expanding 654.0% YoY

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.9%8/10

Strong operational efficiency at 23.9%

RIO6 strengths · Avg: 8.5/10
Return on EquityProfitability
34.5%10/10

Every $100 of equity generates 35 in profit

Market CapQuality
$168.54B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

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

NEXA4 concerns · Avg: 2.8/10
Market CapQuality
$1.63B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-127.33M2/10

Negative free cash flow — burning cash

RIO3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

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 : NEXA

The strongest argument for NEXA centers on P/E Ratio, Revenue Growth, EPS Growth. Revenue growth of 41.7% demonstrates continued momentum.

Bull Case : RIO

The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : NEXA

The primary concerns for NEXA are Market Cap, Profit Margin, Debt/Equity. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Bear Case : RIO

The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

NEXA carries more volatility with a beta of 0.89 — expect wider price swings.

NEXA is growing revenue faster at 41.7% — sustainability is the question.

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

Bottom Line

NEXA scores higher overall (72/100 vs 54/100) and 41.7% revenue growth. RIO offers better value entry with a 24.5% margin of safety. 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.

Nexa Resources SA

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Nexa Resources SA is dedicated to the zinc mining and smelting business. The company is headquartered in Luxembourg City, Luxembourg.

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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