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 $113.2B against $4.2B — 27.2× the size. USA Rare Earth Inc. has negative trailing earnings, so its P/E is not meaningful; Rio Tinto PLC trades at 5.7×. 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 5.66 n/m 26.65
P/S n/m n/m 6.78
P/B n/m 0.96 1.18
Price to free cash flow n/m n/m 15.65
EV/EBITDA 0.26 n/m 7.09
EV/Sales 0.12 n/m 4.64
Earnings yield 17.67% (23.06%) (9.58%)
Free cash flow yield 0.00% (10.12%) (8.41%)

Profitability

Metric RIO USAR Other Industrial Metals & Mining median
Gross margin 36.19% — 14.52%
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%) (7.90%)
Return on assets 0.00% (17.88%) (11.61%)
Return on invested capital 0.00% (7.78%) (3.47%)

Growth

Metric RIO USAR Other Industrial Metals & Mining median
Revenue growth (TTM) 9.45% — 27.25%
EPS growth (last fiscal year) (14.00%) (1,102.32%) (15.57%)
Revenue growth, 5-year CAGR 5.26% — 5.26%
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 2.48
Net debt to EBITDA 0.62 6.20 1.07

Dividend

Metric RIO USAR Other Industrial Metals & Mining median
Dividend yield 5.15% — 1.46%
Payout ratio — — —

Size

Metric RIO USAR Other Industrial Metals & Mining median
Market cap 113.18b 4.16b 454.02m

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