Rio Tinto (NYSE: RIO) is one of 86 publicly-traded companies in the “Integrated Mining” industry, but how does it contrast to its rivals? We will compare Rio Tinto to related companies based on the strength of its analyst recommendations, profitability, dividends, risk, earnings, institutional ownership and valuation.

Insider & Institutional Ownership

7.2% of Rio Tinto shares are held by institutional investors. Comparatively, 28.6% 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Rio Tinto pays an annual dividend of $2.37 per share and has a dividend yield of 4.9%. Rio Tinto pays out 69.1% of its earnings in the form of a dividend. As a group, “Integrated Mining” companies pay a dividend yield of 3.8% and pay out 55.3% of their earnings in the form of a dividend.

Volatility & Risk

Rio Tinto has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Rio Tinto’s rivals have a beta of 0.43, meaning that their average share price is 57% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Rio Tinto N/A N/A N/A
Rio Tinto Competitors -8,020.55% 4.24% 0.65%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Rio Tinto $33.78 billion $4.62 billion 14.08
Rio Tinto Competitors $11.93 billion $1.07 billion 2.15

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Rio Tinto and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Tinto 1 6 10 0 2.53
Rio Tinto Competitors 873 2884 3062 81 2.34

Rio Tinto presently has a consensus price target of $50.12, indicating a potential upside of 3.80%. As a group, “Integrated Mining” companies have a potential upside of 13.17%. Given Rio Tinto’s rivals higher probable upside, analysts plainly believe Rio Tinto has less favorable growth aspects than its rivals.

About Rio Tinto

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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