Rio Tinto (RIO) versus Quantum Materials (QTMM) Critical Analysis

Rio Tinto (NYSE:RIO) and Quantum Materials (OTCMKTS:QTMM) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Volatility & Risk

Rio Tinto has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Quantum Materials has a beta of 2.8, indicating that its stock price is 180% more volatile than the S&P 500.

Insider & Institutional Ownership

7.1% of Rio Tinto shares are owned by institutional investors. 12.8% of Quantum Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Rio Tinto and Quantum Materials, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Tinto 2 8 8 0 2.33
Quantum Materials 0 0 0 0 N/A

Rio Tinto currently has a consensus price target of $57.50, indicating a potential upside of 13.14%. Given Rio Tinto’s higher probable upside, equities analysts clearly believe Rio Tinto is more favorable than Quantum Materials.

Dividends

Rio Tinto pays an annual dividend of $2.54 per share and has a dividend yield of 5.0%. Quantum Materials does not pay a dividend. Rio Tinto pays out 53.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Rio Tinto and Quantum Materials’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rio Tinto $40.03 billion 1.68 $8.76 billion $4.79 10.61
Quantum Materials $20,000.00 783.53 -$9.40 million N/A N/A

Rio Tinto has higher revenue and earnings than Quantum Materials.

Profitability

This table compares Rio Tinto and Quantum Materials’ 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
Quantum Materials N/A N/A -406.39%

Summary

Rio Tinto beats Quantum Materials on 7 of the 11 factors compared between the two stocks.

About Rio Tinto

Rio Tinto plc, a mining and metals company, explores for, develops, produces, and processes minerals and metals worldwide. It finds, mines, and processes mineral resources, including aluminum, copper, diamonds, gold, industrial minerals (borates, titanium dioxide, and salt), iron ore, thermal and metallurgical coal, and uranium, as well as sulphuric acid, rhenium, lead carbonate, and selenium. The company was founded in 1873 and is headquartered in London, the United Kingdom. Rio Tinto plc operates as a subsidiary of Rio Tinto Group.

About Quantum Materials

Quantum Materials Corp., a nanotechnology company, designs, develops, produces, and supplies quantum dots, tetrapod quantum dots, and other nanoparticles in the United States. The company's quantum dots are nanoparticles of a semiconductor material, which emit light or electrons when excited with energy, such as light or electricity. Its products are used for a range of applications in the televisions, displays and other optoelectronics, photovoltaics, solid state lighting, life sciences, security ink, battery, and sensor sectors. The company was founded in 2007 and is headquartered in San Marcos, Texas.

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