WallStSmart

Rio Tinto ADR (RIO)vsWest Fraser Timber Co Ltd (WFG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 955% more annual revenue ($57.64B vs $5.46B). RIO leads profitability with a 17.3% profit margin vs -17.2%. RIO earns a higher WallStSmart Score of 54/100 (C-).

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 5.3Quality: 5.0

WFG

Hold

42

out of 100

Grade: D

Growth: 3.3Profit: 2.0Value: 6.0Quality: 6.8
Piotroski: 3/9Altman Z: 3.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIOUndervalued (+14.1%)

Margin of Safety

+14.1%

Fair Value

$114.19

Current Price

$100.48

$13.71 discount

UndervaluedFair: $114.19Overvalued
WFGUndervalued (+16.4%)

Margin of Safety

+16.4%

Fair Value

$89.39

Current Price

$63.31

$26.08 discount

UndervaluedFair: $89.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$163.40B9/10

Large-cap with strong market position

P/E RatioValuation
16.5x8/10

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

WFG2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.8110/10

Safe zone — low bankruptcy risk

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%

WFG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-14.6%2/10

ROE of -14.6% — below average capital efficiency

Revenue GrowthGrowth
-17.1%2/10

Revenue declined 17.1%

Free Cash FlowQuality
$-434.20M2/10

Negative free cash flow — burning cash

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 : WFG

The strongest argument for WFG centers on Price/Book, Altman Z-Score.

Bear Case : RIO

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

Bear Case : WFG

The primary concerns for WFG are Piotroski F-Score, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

RIO profiles as a mature stock while WFG is a turnaround play — different risk/reward profiles.

WFG carries more volatility with a beta of 1.12 — 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 42/100), backed by strong 17.3% margins and 14.6% revenue growth. WFG offers better value entry with a 16.4% margin of safety. Both earn "Buy" and "Hold" 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.

West Fraser Timber Co Ltd

BASIC MATERIALS · LUMBER & WOOD PRODUCTION · USA

West Fraser Timber Co. Ltd., a diversified wood products company, produces and sells wood, paneling, and pulp and paper in western Canada and the southern United States. The company is headquartered in Vancouver, Canada.

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