RIO vs. WPM: Which Stock Is the Better Value Option?

Core Viewpoint - The comparison between Rio Tinto (RIO) and Wheaton Precious Metals Corp. (WPM) indicates that RIO presents a better value opportunity for investors at this time [1]. Group 1: Zacks Rank and Earnings Outlook - Rio Tinto currently holds a Zacks Rank of 1 (Strong Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting an improving earnings outlook for RIO [3]. Group 2: Valuation Metrics - RIO has a forward P/E ratio of 12.04, significantly lower than WPM's forward P/E of 37.78 [5]. - RIO's PEG ratio is 0.96, while WPM's PEG ratio stands at 1.32, indicating RIO's better valuation relative to its expected earnings growth [5]. - RIO's P/B ratio is 1.72, compared to WPM's P/B of 7.04, further highlighting RIO's undervaluation [6]. - Based on these valuation metrics, RIO earns a Value grade of B, whereas WPM receives a Value grade of F [6].