Comparing Rio Tinto PLC (RIO) & Polymet Mining Corp (PLM)

Rio Tinto PLC (NYSE: RIO) and Polymet Mining Corp (NYSE:PLM) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares Rio Tinto PLC and Polymet Mining Corp’s 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
Polymet Mining Corp N/A -5.30% -2.74%

Institutional and Insider Ownership

6.9% of Rio Tinto PLC shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Rio Tinto PLC pays an annual dividend of $2.37 per share and has a dividend yield of 4.9%. Polymet Mining Corp does not pay a dividend.

Valuation & Earnings

This table compares Rio Tinto PLC and Polymet Mining Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rio Tinto PLC $37.60 billion 2.30 $15.22 billion N/A N/A
Polymet Mining Corp N/A N/A -$5.63 million N/A N/A

Rio Tinto PLC has higher revenue and earnings than Polymet Mining Corp.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Rio Tinto PLC and Polymet Mining Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Tinto PLC 1 5 12 0 2.61
Polymet Mining Corp 0 0 0 0 N/A

Rio Tinto PLC presently has a consensus price target of $48.67, suggesting a potential upside of 1.12%. Given Rio Tinto PLC’s higher possible upside, equities research analysts plainly believe Rio Tinto PLC is more favorable than Polymet Mining Corp.

Summary

Rio Tinto PLC beats Polymet Mining Corp on 8 of the 8 factors compared between the two stocks.

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.

Polymet Mining Corp Company Profile

PolyMet Mining Corp. (PolyMet) is a development-stage company. The Company is engaged in the exploration and development of natural resource properties. The Company’s sole mineral property is the NorthMet Project, which is located in St. Louis County in the Mesabi Iron Range mining district approximately 60 miles north of Duluth, Minnesota, the United States. The NorthMet Project consists of NorthMet copper-nickel-precious metals ore body, and the Erie Plant, a processing facility located approximately six miles from the ore body. The NorthMet Project covers a total of approximately 16,700 acres or over 25.9 square miles. The NorthMet mine site totals approximately 4,300 acres or over 6.5 square miles of leased mineral rights and the Erie Plant site totals approximately 12,400 acres or over 19.4 square miles of freehold land. The Erie Plant consists of crushing, grinding and milling facility.

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