WallStSmart

Rio Tinto ADR (RIO)vsTernium SA ADR (TX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 286% more annual revenue ($61.79B vs $16.00B). RIO leads profitability with a 19.6% profit margin vs 4.4%. TX appears more attractively valued with a PEG of 0.13. TX earns a higher WallStSmart Score of 68/100 (B-).

RIO

Buy

64

out of 100

Grade: C+

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

TX

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 5.0Value: 7.7Quality: 8.0
Piotroski: 3/9Altman Z: 3.14
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

Intrinsic value data unavailable for TX.

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

TX6 strengths · Avg: 9.5/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
59.5%10/10

Earnings expanding 59.5% YoY

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

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

TX4 concerns · Avg: 2.8/10
Return on EquityProfitability
4.7%3/10

ROE of 4.7% — below average capital efficiency

Profit MarginProfitability
4.4%3/10

4.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-175.00M2/10

Negative free cash flow — burning cash

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 : TX

The strongest argument for TX centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.13 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 : TX

The primary concerns for TX are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

TX carries more volatility with a beta of 1.17 — 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

TX scores higher overall (68/100 vs 64/100). RIO offers better value entry with a 29.2% 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.

Ternium SA ADR

BASIC MATERIALS · STEEL · USA

Ternium SA manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador and Nicaragua. The company is headquartered in Luxembourg City, Luxembourg.

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