Analyzing Rio Tinto plc (RTP) & Its Rivals

Rio Tinto plc (NYSE: RTP) is one of 106 publicly-traded companies in the “Integrated Mining” industry, but how does it contrast to its peers? We will compare Rio Tinto plc to similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

28.1% of shares of all “Integrated Mining” companies are held by institutional investors. 13.0% of shares of all “Integrated Mining” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Rio Tinto plc and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Rio Tinto plc N/A N/A 14.43
Rio Tinto plc Competitors $11.55 billion $1.05 billion -90.36

Rio Tinto plc’s peers have higher revenue and earnings than Rio Tinto plc. Rio Tinto plc is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Rio Tinto plc has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Rio Tinto plc’s peers have a beta of 0.41, indicating that their average stock price is 59% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Rio Tinto plc 17.01% 16.16% 7.28%
Rio Tinto plc Competitors -35,586.50% 2.44% -0.17%

Analyst Ratings

This is a breakdown of recent ratings for Rio Tinto plc and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Tinto plc 0 0 0 0 N/A
Rio Tinto plc Competitors 911 3057 3215 85 2.34

As a group, “Integrated Mining” companies have a potential upside of 3.69%. Given Rio Tinto plc’s peers higher possible upside, analysts plainly believe Rio Tinto plc has less favorable growth aspects than its peers.

Rio Tinto plc 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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