WallStSmart

Rio Tinto ADR (RIO)vsScotts Miracle-Gro Company (SMG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 1595% more annual revenue ($57.64B vs $3.40B). RIO leads profitability with a 17.3% profit margin vs 2.6%. SMG appears more attractively valued with a PEG of 0.77. RIO earns a higher WallStSmart Score of 54/100 (C-).

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 5.3Quality: 5.0

SMG

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 7.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+14.1%)

Margin of Safety

+14.1%

Fair Value

$114.19

Current Price

$100.48

$13.71 discount

UndervaluedFair: $114.19Overvalued
SMGUndervalued (+14.9%)

Margin of Safety

+14.9%

Fair Value

$78.94

Current Price

$62.42

$16.52 discount

UndervaluedFair: $78.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$161.98B9/10

Large-cap with strong market position

P/E RatioValuation
16.4x8/10

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

SMG3 strengths · Avg: 8.7/10
Debt/EquityHealth
-5.0510/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.778/10

Growing faster than its price suggests

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

Areas to Watch

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%

SMG4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Return on EquityProfitability
-47.6%2/10

ROE of -47.6% — below average capital efficiency

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SMG

The strongest argument for SMG centers on Debt/Equity, PEG Ratio, P/E Ratio. PEG of 0.77 suggests the stock is reasonably priced for its growth.

Bear Case : RIO

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

Bear Case : SMG

The primary concerns for SMG are Altman Z-Score, Profit Margin, Return on Equity. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SMG carries more volatility with a beta of 1.92 — 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 43/100), backed by strong 17.3% margins and 14.6% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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.

Scotts Miracle-Gro Company

BASIC MATERIALS · AGRICULTURAL INPUTS · USA

Scotts Miracle-Gro Company manufactures, markets, and sells lawn and garden products to consumers in the United States and internationally. The company is headquartered in Marysville, Ohio.

Visit Website →

Want to dig deeper into these stocks?