WallStSmart

Royal Gold Inc (RGLD)vsVale SA ADR (VALE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vale SA ADR generates 20927% more annual revenue ($214.86B vs $1.02B). RGLD leads profitability with a 45.6% profit margin vs 7.3%. VALE appears more attractively valued with a PEG of 0.34. VALE earns a higher WallStSmart Score of 67/100 (B-).

RGLD

Strong Buy

65

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 6.0Quality: 7.3
Piotroski: 4/9Altman Z: 8.52

VALE

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 8.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RGLDUndervalued (+27.0%)

Margin of Safety

+27.0%

Fair Value

$390.60

Current Price

$233.38

$157.22 discount

UndervaluedFair: $390.60Overvalued
VALEUndervalued (+81.5%)

Margin of Safety

+81.5%

Fair Value

$94.06

Current Price

$16.36

$77.70 discount

UndervaluedFair: $94.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RGLD5 strengths · Avg: 9.6/10
Profit MarginProfitability
45.6%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
60.2%10/10

Strong operational efficiency at 60.2%

Revenue GrowthGrowth
86.1%10/10

Revenue surging 86.1% year-over-year

Altman Z-ScoreHealth
8.5210/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

VALE5 strengths · Avg: 8.6/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

Market CapQuality
$71.41B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

EPS GrowthGrowth
22.0%8/10

Earnings expanding 22.0% YoY

Areas to Watch

RGLD2 concerns · Avg: 3.0/10
P/E RatioValuation
34.6x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-28.9%2/10

Earnings declined 28.9%

VALE3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : RGLD

The strongest argument for RGLD centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 45.6% and operating margin at 60.2%. Revenue growth of 86.1% demonstrates continued momentum.

Bull Case : VALE

The strongest argument for VALE centers on PEG Ratio, Market Cap, Price/Book. PEG of 0.34 suggests the stock is reasonably priced for its growth.

Bear Case : RGLD

The primary concerns for RGLD are P/E Ratio, EPS Growth.

Bear Case : VALE

The primary concerns for VALE are Revenue Growth, Return on Equity, Profit Margin.

Key Dynamics to Monitor

RGLD profiles as a growth stock while VALE is a value play — different risk/reward profiles.

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

RGLD is growing revenue faster at 86.1% — sustainability is the question.

VALE generates stronger free cash flow (723M), providing more financial flexibility.

Bottom Line

VALE scores higher overall (67/100 vs 65/100). RGLD offers better value entry with a 27.0% margin of safety. Both earn "Strong Buy" and "Strong 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.

Royal Gold Inc

BASIC MATERIALS · GOLD · USA

Royal Gold, Inc., acquires and manages precious metal flows, royalties and related interests. The company is headquartered in Denver, Colorado.

Vale SA ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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