WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 1561% more annual revenue ($57.64B vs $3.47B). RIO leads profitability with a 17.3% profit margin vs 3.2%. SMG appears more attractively valued with a PEG of 0.85. RIO earns a higher WallStSmart Score of 54/100 (C-).

RIO

Buy

54

out of 100

Grade: C-

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

SMG

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 6.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+24.5%)

Margin of Safety

+24.5%

Fair Value

$130.00

Current Price

$100.69

$29.31 discount

UndervaluedFair: $130.00Overvalued
SMGSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$57.14

Current Price

$57.67

$0.53 premium

UndervaluedFair: $57.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SMG4 strengths · Avg: 8.5/10
Debt/EquityHealth
-8.1910/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.858/10

Growing faster than its price suggests

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

Areas to Watch

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%

SMG3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Profit MarginProfitability
3.2%3/10

3.2% 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 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 0.85 suggests the stock is reasonably priced for its growth.

Bear Case : RIO

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

Bear Case : SMG

The primary concerns for SMG are Altman Z-Score, Profit Margin, Return on Equity. Thin 3.2% 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 1.83 — 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 53/100), backed by strong 17.3% margins and 14.6% revenue growth. Both earn "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.

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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