WallStSmart

Vale SA ADR (VALE)vsValhi Inc (VHI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vale SA ADR generates 10245% more annual revenue ($214.86B vs $2.08B). VALE leads profitability with a 7.3% profit margin vs -2.8%. VHI appears more attractively valued with a PEG of 0.32. VALE earns a higher WallStSmart Score of 67/100 (B-).

VALE

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 8.7Quality: 5.0

VHI

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 2.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

VALEUndervalued (+81.5%)

Margin of Safety

+81.5%

Fair Value

$94.06

Current Price

$16.36

$77.70 discount

UndervaluedFair: $94.06Overvalued
VHIUndervalued (+65.3%)

Margin of Safety

+65.3%

Fair Value

$45.18

Current Price

$15.05

$30.13 discount

UndervaluedFair: $45.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

VALE5 strengths · Avg: 8.6/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

Market CapQuality
$71.41B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

EPS GrowthGrowth
22.0%8/10

Earnings expanding 22.0% YoY

VHI2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3210/10

Growing faster than its price suggests

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Areas to Watch

VALE3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

VHI4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Market CapQuality
$420.29M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-4.0%2/10

ROE of -4.0% — below average capital efficiency

EPS GrowthGrowth
-95.7%2/10

Earnings declined 95.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : VALE

The strongest argument for VALE centers on PEG Ratio, Market Cap, Price/Book. PEG of 0.34 suggests the stock is reasonably priced for its growth.

Bull Case : VHI

The strongest argument for VHI centers on PEG Ratio, Price/Book. PEG of 0.32 suggests the stock is reasonably priced for its growth.

Bear Case : VALE

The primary concerns for VALE are Revenue Growth, Return on Equity, Profit Margin.

Bear Case : VHI

The primary concerns for VHI are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

VALE profiles as a value stock while VHI is a turnaround play — different risk/reward profiles.

VHI carries more volatility with a beta of 1.11 — expect wider price swings.

VHI is growing revenue faster at 2.8% — sustainability is the question.

VALE generates stronger free cash flow (723M), providing more financial flexibility.

Bottom Line

VALE scores higher overall (67/100 vs 42/100). VHI offers better value entry with a 65.3% margin of safety. Both earn "Strong 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.

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.

Valhi Inc

BASIC MATERIALS · CHEMICALS · USA

Valhi, Inc. engages in the chemicals, components, and real estate development and management businesses in Asia Pacific, Europe, North America, and internationally.

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