Rio Tinto PLC (RIO) vs USA Rare Earth Inc. (USAR)

Rio Tinto PLC and USA Rare Earth Inc. are both Other Industrial Metals & Mining companies. Rio Tinto PLC is the larger, with a market value of $104.3B against $2.8B — 37.5× the size. USA Rare Earth Inc. has negative trailing earnings, so its P/E is not meaningful; Rio Tinto PLC trades at 5.2×. Rio Tinto PLC has the higher net margin (23.1% vs 0.00%) and the higher return on invested capital (0.00% vs −7.78%). Across the 10 metrics below, Rio Tinto PLC leads on 8 and USA Rare Earth Inc. on 2.

Valuation

Metric RIO USAR Other Industrial Metals & Mining median
P/E 5.23 n/m 22.71
P/S n/m n/m 5.39
P/B n/m 0.68 1.39
Price to free cash flow n/m n/m 14.19
EV/EBITDA 0.26 n/m 5.51
EV/Sales 0.12 n/m 4.77
Earnings yield 19.12% (32.49%) (11.17%)
Free cash flow yield 0.00% (14.27%) (7.91%)

Profitability

Metric RIO USAR Other Industrial Metals & Mining median
Gross margin 36.19% — 14.48%
Operating margin 0.00% 0.00% 0.00%
Net margin 23.14% 0.00% 0.00%
Free cash flow margin 0.00% 0.00% 0.00%
Return on equity 0.00% (23.63%) (6.24%)
Return on assets 0.00% (17.88%) (14.10%)
Return on invested capital 0.00% (7.78%) (3.57%)

Growth

Metric RIO USAR Other Industrial Metals & Mining median
Revenue growth (TTM) 9.45% — 28.07%
EPS growth (last fiscal year) (14.00%) (724.41%) (14.00%)
Revenue growth, 5-year CAGR 5.26% — 6.99%
Net income growth, 5-year CAGR 0.40% — 0.00%

Health

Metric RIO USAR Other Industrial Metals & Mining median
Debt to equity 0.31 0.00 0.04
Current ratio 1.42 32.79 2.53
Net debt to EBITDA 0.62 6.20 1.03

Dividend

Metric RIO USAR Other Industrial Metals & Mining median
Dividend yield 5.57% — 2.31%
Payout ratio — — 0.12

Size

Metric RIO USAR Other Industrial Metals & Mining median
Market cap 104.34b 2.78b 433.17m

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