WallStSmart

Rio Tinto ADR (RIO)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 55% more annual revenue ($57.64B vs $37.30B). RIO leads profitability with a 17.3% profit margin vs 1.9%. RIO appears more attractively valued with a PEG of 5.69. RIO earns a higher WallStSmart Score of 54/100 (C-).

RIO

Buy

54

out of 100

Grade: C-

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

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 6.0Value: 2.0Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOSignificantly Overvalued (-137.3%)

Margin of Safety

-137.3%

Fair Value

$41.34

Current Price

$83.15

$41.81 premium

UndervaluedFair: $41.34Overvalued
WBDSignificantly Overvalued (-106.3%)

Margin of Safety

-106.3%

Fair Value

$13.57

Current Price

$27.42

$13.85 premium

UndervaluedFair: $13.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$139.24B9/10

Large-cap with strong market position

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

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

WBD4 strengths · Avg: 8.8/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$68.03B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B in free cash flow

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%

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

P/E RatioValuation
94.5x2/10

Premium valuation, high expectations priced in

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 : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : RIO

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

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. A P/E of 94.5x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

RIO profiles as a mature stock while WBD is a value play — different risk/reward profiles.

WBD carries more volatility with a beta of 1.68 — 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 51/100), 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.

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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