WallStSmart

Rio Tinto ADR (RIO)vsVale SA ADR (VALE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vale SA ADR generates 271% more annual revenue ($213.59B vs $57.64B). RIO leads profitability with a 17.3% profit margin vs 6.5%. RIO appears more attractively valued with a PEG of 5.69. VALE earns a higher WallStSmart Score of 55/100 (C).

RIO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 4.7Quality: 5.0

VALE

Buy

55

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOSignificantly Overvalued (-136.9%)

Margin of Safety

-136.9%

Fair Value

$41.41

Current Price

$87.72

$46.31 premium

UndervaluedFair: $41.41Overvalued
VALESignificantly Overvalued (-47.9%)

Margin of Safety

-47.9%

Fair Value

$11.75

Current Price

$14.69

$2.94 premium

UndervaluedFair: $11.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$142.79B9/10

Large-cap with strong market position

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

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

VALE4 strengths · Avg: 8.8/10
Revenue GrowthGrowth
50.0%10/10

Revenue surging 50.0% year-over-year

Market CapQuality
$64.25B9/10

Large-cap with strong market position

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

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%

VALE4 concerns · Avg: 3.0/10
P/E RatioValuation
27.4x4/10

Moderate valuation

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

PEG RatioValuation
12.382/10

Expensive relative to growth rate

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 : VALE

The strongest argument for VALE centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 50.0% demonstrates continued momentum.

Bear Case : RIO

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

Bear Case : VALE

The primary concerns for VALE are P/E Ratio, Return on Equity, Profit Margin.

Key Dynamics to Monitor

RIO profiles as a mature stock while VALE is a hypergrowth play — different risk/reward profiles.

VALE carries more volatility with a beta of 0.94 — expect wider price swings.

VALE is growing revenue faster at 50.0% — sustainability is the question.

RIO generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

VALE scores higher overall (55/100 vs 54/100) and 50.0% 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.

Vale SA ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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