Rio Tinto Group (NYSE:RIO – Get Free Report) and Lithium Americas (Argentina) (NYSE:LAAC – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Institutional & Insider Ownership
19.3% of Rio Tinto Group shares are owned by institutional investors. Comparatively, 49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 19.8% of Lithium Americas (Argentina) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Rio Tinto Group and Lithium Americas (Argentina)’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Rio Tinto Group | N/A | N/A | N/A |
Lithium Americas (Argentina) | N/A | 3.27% | 2.66% |
Volatility & Risk
Valuation & Earnings
This table compares Rio Tinto Group and Lithium Americas (Argentina)’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Rio Tinto Group | $54.04 billion | 1.60 | $10.06 billion | N/A | N/A |
Lithium Americas (Argentina) | N/A | N/A | $1.29 billion | $8.01 | 0.65 |
Rio Tinto Group has higher revenue and earnings than Lithium Americas (Argentina).
Analyst Ratings
This is a summary of recent ratings for Rio Tinto Group and Lithium Americas (Argentina), as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Rio Tinto Group | 0 | 2 | 8 | 0 | 2.80 |
Lithium Americas (Argentina) | 0 | 2 | 3 | 0 | 2.60 |
Rio Tinto Group currently has a consensus price target of $72.00, indicating a potential upside of 5.43%. Lithium Americas (Argentina) has a consensus price target of $10.70, indicating a potential upside of 108.58%. Given Lithium Americas (Argentina)’s higher possible upside, analysts plainly believe Lithium Americas (Argentina) is more favorable than Rio Tinto Group.
Summary
Lithium Americas (Argentina) beats Rio Tinto Group on 6 of the 10 factors compared between the two stocks.
About Rio Tinto Group
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. The Minerals segment is involved in mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets; diamond mining, sorting, and marketing; and development projects for battery materials, such as lithium. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.
About Lithium Americas (Argentina)
Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.
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