WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 1674% more annual revenue ($61.79B vs $3.48B). RIO leads profitability with a 19.6% profit margin vs 2.1%. SMG appears more attractively valued with a PEG of 0.81. RIO earns a higher WallStSmart Score of 64/100 (C+).

RIO

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 9.0Value: 6.0Quality: 5.5
Piotroski: 1/9Altman Z: 2.03

SMG

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 5.5Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+29.2%)

Margin of Safety

+29.2%

Fair Value

$138.61

Current Price

$99.96

$38.65 discount

UndervaluedFair: $138.61Overvalued
SMGSignificantly Overvalued (-17.4%)

Margin of Safety

-17.4%

Fair Value

$57.24

Current Price

$56.47

$0.77 premium

UndervaluedFair: $57.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO6 strengths · Avg: 8.5/10
Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$167.95B9/10

Large-cap with strong market position

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

SMG2 strengths · Avg: 9.0/10
Debt/EquityHealth
-10.1310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Areas to Watch

RIO2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.692/10

Expensive relative to growth rate

SMG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Return on EquityProfitability
-47.6%2/10

ROE of -47.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : RIO

The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 19.6% and operating margin at 28.1%. Revenue growth of 15.5% demonstrates continued momentum.

Bull Case : SMG

The strongest argument for SMG centers on Debt/Equity, PEG Ratio. PEG of 0.81 suggests the stock is reasonably priced for its growth.

Bear Case : RIO

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

Bear Case : SMG

The primary concerns for SMG are Revenue Growth, Altman Z-Score, Profit Margin. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SMG carries more volatility with a beta of 1.81 — expect wider price swings.

RIO is growing revenue faster at 15.5% — sustainability is the question.

RIO generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

RIO scores higher overall (64/100 vs 48/100), backed by strong 19.6% margins and 15.5% 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.

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