Rio Tinto PLC (NYSE: RIO) and Turquoise Hill Resources (NYSE:IVN) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Earnings and Valuation
This table compares Rio Tinto PLC and Turquoise Hill Resources’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Rio Tinto PLC | $37.60 billion | 2.13 | $15.22 billion | N/A | N/A |
| Turquoise Hill Resources | N/A | N/A | N/A | N/A | N/A |
Rio Tinto PLC has higher revenue and earnings than Turquoise Hill Resources.
Profitability
This table compares Rio Tinto PLC and Turquoise Hill Resources’ 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 |
| Turquoise Hill Resources | -0.19% | 1.09% | -0.01% |
Analyst Recommendations
This is a breakdown of current recommendations for Rio Tinto PLC and Turquoise Hill Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rio Tinto PLC | 1 | 3 | 14 | 0 | 2.72 |
| Turquoise Hill Resources | 0 | 0 | 0 | 0 | N/A |
Rio Tinto PLC currently has a consensus target price of $42.00, indicating a potential downside of 5.91%. Given Rio Tinto PLC’s higher possible upside, analysts plainly believe Rio Tinto PLC is more favorable than Turquoise Hill Resources.
Insider & Institutional Ownership
7.2% of Rio Tinto PLC shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
Rio Tinto PLC pays an annual dividend of $2.36 per share and has a dividend yield of 5.3%. Turquoise Hill Resources does not pay a dividend.
Summary
Rio Tinto PLC beats Turquoise Hill Resources on 7 of the 8 factors compared between the two stocks.
About Rio Tinto PLC
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.
About Turquoise Hill Resources
Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).
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