Reviewing Rio Tinto (NYSE:RIO) & Stans Energy (NYSE:HREEF)

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

Dividends

Rio Tinto pays an annual dividend of $3.02 per share and has a dividend yield of 5.5%. Stans Energy does not pay a dividend. Rio Tinto pays out 59.6% of its earnings in the form of a dividend. Rio Tinto has increased its dividend for 2 consecutive years.

Profitability

This table compares Rio Tinto and Stans 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
Stans Energy N/A N/A -225.18%

Earnings & Valuation

This table compares Rio Tinto and Stans Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rio Tinto $40.52 billion 1.72 $13.64 billion $5.07 10.82
Stans Energy N/A N/A -$2.99 million N/A N/A

Rio Tinto has higher revenue and earnings than Stans Energy.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Rio Tinto and Stans Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Tinto 5 10 4 0 1.95
Stans Energy 0 0 0 0 N/A

Rio Tinto presently has a consensus target price of $55.66, indicating a potential upside of 1.47%. Given Rio Tinto’s higher possible upside, equities analysts plainly believe Rio Tinto is more favorable than Stans Energy.

Risk & Volatility

Rio Tinto has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Stans Energy has a beta of 3.32, meaning that its share price is 232% more volatile than the S&P 500.

Institutional & Insider Ownership

8.2% of Rio Tinto shares are owned by institutional investors. Comparatively, 0.0% of Stans Energy shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Rio Tinto beats Stans Energy on 8 of the 10 factors compared between the two stocks.

About Rio Tinto

Rio Tinto Group engages in finding, mining, and processing mineral resources worldwide. The company offers aluminium, silver, molybdenum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium. It is also involved in the alumina production; primary aluminium smelting; bauxite mining; alumina refining; and ilmenite mining, as well as provision of gypsum. Rio Tinto Group is headquartered in London, the United Kingdom.

About Stans Energy

Stans Energy Corp. operates as a resource development company with a focus on rare earth and specialty metal properties in Canada, the Kyrgyz Republic, and Russia. It primarily explores for uranium, rare earth elements, gold, and base metals. Stans Energy Corp. was incorporated in 2005 and is headquartered in Toronto, Canada.

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