Rio Tinto PLC (NYSE: RIO) is one of 105 public companies in the “Integrated Mining” industry, but how does it contrast to its competitors? We will compare Rio Tinto PLC to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Rio Tinto PLC and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Tinto PLC 1 6 12 0 2.58
Rio Tinto PLC Competitors 866 2863 3012 81 2.34

Rio Tinto PLC presently has a consensus price target of $48.59, suggesting a potential downside of 3.78%. As a group, “Integrated Mining” companies have a potential upside of 0.25%. Given Rio Tinto PLC’s competitors higher possible upside, analysts plainly believe Rio Tinto PLC has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Rio Tinto PLC N/A N/A N/A
Rio Tinto PLC Competitors -35,586.50% 2.41% -0.16%

Institutional and Insider Ownership

7.0% of Rio Tinto PLC shares are held by institutional investors. Comparatively, 28.5% of shares of all “Integrated Mining” companies are held by institutional investors. 13.1% of shares of all “Integrated Mining” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Rio Tinto PLC and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Rio Tinto PLC $33.78 billion $4.62 billion 14.72
Rio Tinto PLC Competitors $11.93 billion $1.07 billion -99.16

Rio Tinto PLC has higher revenue and earnings than its competitors. Rio Tinto PLC is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Rio Tinto PLC pays an annual dividend of $2.37 per share and has a dividend yield of 4.7%. Rio Tinto PLC pays out 69.1% of its earnings in the form of a dividend. As a group, “Integrated Mining” companies pay a dividend yield of 3.7% and pay out 48.1% of their earnings in the form of a dividend.

Risk & Volatility

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

Summary

Rio Tinto PLC beats its competitors on 8 of the 14 factors compared.

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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