WallStSmart

Rio Tinto ADR (RIO)vsSasol Ltd (SSL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Sasol Ltd generates 340% more annual revenue ($272.12B vs $61.79B). RIO leads profitability with a 19.6% profit margin vs 4.5%. SSL appears more attractively valued with a PEG of 0.14. SSL earns a higher WallStSmart Score of 71/100 (B).

RIO

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 9.0Value: 6.7Quality: 5.5
Piotroski: 1/9Altman Z: 2.03

SSL

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 6.5Value: 9.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+28.9%)

Margin of Safety

+28.9%

Fair Value

$137.94

Current Price

$83.16

$54.78 discount

UndervaluedFair: $137.94Overvalued
SSLUndervalued (+84.9%)

Margin of Safety

+84.9%

Fair Value

$50.37

Current Price

$15.19

$35.18 discount

UndervaluedFair: $50.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO6 strengths · Avg: 8.8/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
34.1%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$139.45B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

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

SSL6 strengths · Avg: 9.3/10
PEG RatioValuation
0.1410/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
447.5%10/10

Earnings expanding 447.5% YoY

Free Cash FlowQuality
$11.61B10/10

Generating 11.6B in free cash flow

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.1%8/10

Strong operational efficiency at 23.1%

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

SSL1 concerns · Avg: 3.0/10
Profit MarginProfitability
4.5%3/10

4.5% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : RIO

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

Bull Case : SSL

The strongest argument for SSL centers on PEG Ratio, Price/Book, EPS Growth. Revenue growth of 17.9% demonstrates continued momentum. PEG of 0.14 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 : SSL

The primary concerns for SSL are Profit Margin. Thin 4.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

RIO carries more volatility with a beta of 0.66 — expect wider price swings.

SSL is growing revenue faster at 17.9% — sustainability is the question.

SSL generates stronger free cash flow (11.6B), providing more financial flexibility.

Monitor OTHER INDUSTRIAL METALS & MINING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SSL scores higher overall (71/100 vs 64/100) and 17.9% revenue growth. RIO offers better value entry with a 28.9% 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.

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.

Sasol Ltd

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sasol Limited is an integrated energy and chemical company in South Africa. The company is headquartered in Johannesburg, South Africa.

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