Rio Tinto PLC (RIO) vs VALE S.A. (VALE)

Rio Tinto PLC and VALE S.A. are both Other Industrial Metals & Mining companies. Rio Tinto PLC is the larger, with a market value of $104.3B against $46.6B — 2.2× the size. Rio Tinto PLC trades at the lower P/E: 5.2× against 76.4×. VALE S.A. grew revenue faster over the last twelve months: 10.5% against 9.45%. Rio Tinto PLC has the higher net margin (23.1% vs 1.64%) and the lower return on invested capital (0.00% vs 6.58%). Both pay a dividend; Rio Tinto PLC yields more (5.57% vs 3.49%). Across the 20 metrics below, Rio Tinto PLC leads on 13 and VALE S.A. on 7.

Valuation

Metric RIO VALE Other Industrial Metals & Mining median
P/E 5.23 76.40 22.71
P/S n/m 1.18 5.39
P/B n/m 1.27 1.39
Price to free cash flow n/m 14.19 14.19
EV/EBITDA 0.26 6.89 5.51
EV/Sales 0.12 1.49 4.77
Earnings yield 19.12% 1.31% (11.17%)
Free cash flow yield 0.00% 7.05% (7.91%)

Profitability

Metric RIO VALE Other Industrial Metals & Mining median
Gross margin 36.19% 31.94% 14.48%
Operating margin 0.00% 13.10% 0.00%
Net margin 23.14% 1.64% 0.00%
Free cash flow margin 0.00% 8.32% 0.00%
Return on equity 0.00% 1.68% (6.24%)
Return on assets 0.00% 0.76% (14.10%)
Return on invested capital 0.00% 6.58% (3.57%)

Growth

Metric RIO VALE Other Industrial Metals & Mining median
Revenue growth (TTM) 9.45% 10.54% 28.07%
EPS growth (last fiscal year) (14.00%) (61.81%) (14.00%)
Revenue growth, 5-year CAGR 5.26% (0.58%) 6.99%
Net income growth, 5-year CAGR 0.40% (13.59%) 0.00%

Health

Metric RIO VALE Other Industrial Metals & Mining median
Debt to equity 0.31 0.47 0.04
Current ratio 1.42 1.10 2.53
Net debt to EBITDA 0.62 1.23 1.03

Dividend

Metric RIO VALE Other Industrial Metals & Mining median
Dividend yield 5.57% 3.49% 2.31%
Payout ratio — 2.67 0.12

Size

Metric RIO VALE Other Industrial Metals & Mining median
Market cap 104.34b 46.63b 433.17m

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