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 $113.2B against $53.0B — 2.1× the size. Rio Tinto PLC trades at the lower P/E: 5.7× against 26.7×. VALE S.A. grew revenue faster over the last twelve months: 12.7% against 9.45%. Rio Tinto PLC has the higher net margin (23.1% vs 5.11%) and the lower return on invested capital (0.00% vs 7.97%). Both pay a dividend; Rio Tinto PLC yields more (5.15% vs 3.06%). 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 5.66 26.65 26.65
P/S n/m 1.35 6.78
P/B n/m 1.43 1.18
Price to free cash flow n/m 15.65 15.65
EV/EBITDA 0.26 6.86 7.09
EV/Sales 0.12 1.66 4.64
Earnings yield 17.67% 3.75% (9.58%)
Free cash flow yield 0.00% 6.39% (8.41%)

Profitability

Metric RIO VALE Other Industrial Metals & Mining median
Gross margin 36.19% 34.82% 14.52%
Operating margin 0.00% 16.06% 0.00%
Net margin 23.14% 5.11% 0.00%
Free cash flow margin 0.00% 8.62% 0.00%
Return on equity 0.00% 5.31% (7.90%)
Return on assets 0.00% 2.35% (11.61%)
Return on invested capital 0.00% 7.97% (3.47%)

Growth

Metric RIO VALE Other Industrial Metals & Mining median
Revenue growth (TTM) 9.45% 12.67% 27.25%
EPS growth (last fiscal year) (14.00%) (61.81%) (15.57%)
Revenue growth, 5-year CAGR 5.26% (0.58%) 5.26%
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 0.48 0.04
Current ratio 1.42 1.19 2.48
Net debt to EBITDA 0.62 1.23 1.07

Dividend

Metric RIO VALE Other Industrial Metals & Mining median
Dividend yield 5.15% 3.06% 1.46%
Payout ratio — 0.82 —

Size

Metric RIO VALE Other Industrial Metals & Mining median
Market cap 113.18b 53.02b 454.02m

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