Rio Tinto (RIO) versus Its Rivals Critical Survey

Rio Tinto (NYSE: RIO) is one of 86 publicly-traded companies in the “Integrated Mining” industry, but how does it compare to its rivals? We will compare Rio Tinto to related businesses based on the strength of its valuation, institutional ownership, profitability, risk, dividends, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Rio Tinto and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Tinto 1 6 10 0 2.53
Rio Tinto Competitors 874 2888 3063 81 2.34

Rio Tinto presently has a consensus target price of $50.12, suggesting a potential upside of 6.51%. As a group, “Integrated Mining” companies have a potential upside of 13.67%. Given Rio Tinto’s rivals higher possible upside, analysts clearly believe Rio Tinto has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

7.2% of Rio Tinto shares are owned by institutional investors. Comparatively, 28.6% of shares of all “Integrated Mining” companies are owned by institutional investors. 13.0% of shares of all “Integrated Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Rio Tinto has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Rio Tinto’s rivals have a beta of 0.42, suggesting that their average stock price is 58% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rio Tinto and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Rio Tinto $33.78 billion $4.62 billion N/A
Rio Tinto Competitors $11.93 billion $1.07 billion 12.11

Rio Tinto has higher revenue and earnings than its rivals.

Dividends

Rio Tinto pays an annual dividend of $2.37 per share and has a dividend yield of 5.0%. As a group, “Integrated Mining” companies pay a dividend yield of 3.7% and pay out 53.9% of their earnings in the form of a dividend.

Profitability

This table compares Rio Tinto and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rio Tinto N/A N/A N/A
Rio Tinto Competitors -8,020.21% 4.37% 0.72%

Summary

Rio Tinto beats its rivals on 8 of the 14 factors compared.

Rio Tinto Company Profile

Rio Tinto plc is a mining and metals company. The Company’s business is finding, mining and processing mineral resources. The Company’s segments include Iron Ore, Aluminium, Copper & Diamonds, Energy & Minerals and Other Operations. The Company operates an iron ore business, supplying the global seaborne iron ore trade. Its Iron Ore product operations are located in the Pilbara region of Western Australia. The Aluminium business includes bauxite mines, alumina refineries and aluminum smelters. Its bauxite mines are located in Australia, Brazil and Guinea. The Copper & Diamonds segment has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals segment consists of mining, refining and marketing operations in over 10 countries, across six sectors: borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium.

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