Paladin Energy (OTCMKTS:PALAF) versus Rio Tinto (NYSE:RIO) Head-To-Head Analysis

Rio Tinto (NYSE:RIO) and Paladin Energy (OTCMKTS:PALAF) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

19.3% of Rio Tinto shares are owned by institutional investors. Comparatively, 0.0% of Paladin Energy shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rio Tinto and Paladin Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rio Tinto	2	7	6	1	2.38
Paladin Energy	1	0	1	0	2.00

Rio Tinto currently has a consensus price target of $105.50, suggesting a potential upside of 9.09%. Paladin Energy has a consensus price target of $9.70, suggesting a potential upside of 48.55%. Given Paladin Energy’s higher probable upside, analysts clearly believe Paladin Energy is more favorable than Rio Tinto.

Valuation & Earnings

This table compares Rio Tinto and Paladin Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rio Tinto	$57.64 billion	2.11	$9.97 billion	N/A	N/A
Paladin Energy	$177.68 million	16.51	-$44.64 million	($0.05)	-130.60

Rio Tinto has higher revenue and earnings than Paladin Energy.

Volatility and Risk

Rio Tinto has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Paladin Energy has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Rio Tinto and Paladin Energy’s 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
Paladin Energy	-7.08%	-1.90%	-1.44%

Summary

Rio Tinto beats Paladin Energy on 9 of the 12 factors compared between the two stocks.

About Rio Tinto

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 Paladin Energy

Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.